MARKET reports, in the form of monthly flyers, are sent by stockbrokers, the investment wings of insurance companies and banks, usually to the media and clients with substantial funds under investment with the institution. (Big shareholders, such as corporate pension funds can and do demand personal briefings.) These market reports are a good source of information for ordinary savers and investors who are increasingly facing the dilemma of trying to choose the right stock, share or stock market cracker bond from among so many being advertised. Their value usually lies in the fact that they are written in relatively easy to understand language and impart the latest market news from different countries and stock exchanges.
The back of such reports often contain a digest of the pros and cons of investing in a certain market. For example, this month Hibernian Investment Managers highlighted five equity markets - Ireland, Europe, Britain and the United States. In each case they pointed out the strength of the market, such as Ireland's continuing sound domestic economy and high levels of institutional cash, and also how the earnings outlook of existing stocks appears "dull" and how "progress is dependent on overseas sectors and markets," themselves susceptible to everything from political uncertainty in Britain, peaking profit margins in the US and events like rising bond yields and lower growth forecasts in the rest of Europe.
These market reports also evaluate other international markets like. Japan, the Pacific Basin and Latin America and may also be of, use to people who want to invests in a tracker bond, but know very little about the prospects for growth, especially in volatile exchanges like the Japanese Nikkei or developing ones like the Pacific Basin.
On the latter, Hibernian, for example, says that while "this" "region generated an almost 4 per cent return in April and is one of the best performing areas this year, Hong Kong is suffering from concern that China's Most Favoured Nation status may not be renewed by the US." It continues that "earlier concerns about inflation, particularly in Thailand have been calmed following the release of good statistics". Hibernian's portfolio manager Dara FitzGerald recommends that investors assess bulletins like these - "over a matter of few months" if they want to get a feel of the performance of certain markets.
The Hibernian Investment, Managers market report is available from La Touche House, IFSC, Custom House Docks, Dublin 1, Telephone (01) 6700950.
