Readings: ULIP pitch, Quantum Gold ETF, US SPX Bears
The recent stock market volatility has had life insurers take a hard look at their fastest moving product, the investment-related unit linked plan (ULIP).
And the companies are tactically changing their pitch. Most will now play up the flexibility of free switches offered by Ulips, rather than promotes possible stock market gains.
ULIPs, largely market-driven, comprise almost 80-85% of new business premium of the companies.
More BS from the purveyors of the worst investment product out there.
Quantum Asset Management Co Pvt Ltd said on Wednesday it will launch its gold exchange-traded fund on Thursday with a listing likely in March.
. . . this fund has no entry load, our unit size will be half a gram.”
Yet another gold ETF - there are now 5 choices for Indian investors!
- Zeal LLC: SPX Secular Bears
With almost 8 years of sideways trading, and general valuations shrinking relentlessly, there is just no doubt we are in the second half of a Long Valuation Wave. The “second half of an LVW” is just a synonym for a secular bear market. The problem is these secular bears tend to run for 17 years in duration and we are merely starting to approach the half-way point today.
If the US stock markets continue trading sideways on balance until 2016, at which point stocks will be a once-in-a-trading-lifetime bargain at 7x earnings, are we now due for a cyclical bear to keep the SPX within its secular trading range?
Shares the same outlook (single-digit returns for the next 5-10 years) as other US ‘bears’ - Hussman, Grantham et al.
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