Business Maverick: Davos’s Global Elite Are Laggards in Stock-Market Performance

An equally weighted portfolio of 436 publicly traded companies identified by Bloomberg as represented at the conference in 2019 underperformed the S&P 500 Index by about 10 percentage points since the delegates last met. It also did worse than the Stoxx Europe 600 and a global basket of shares.

Part of the problem is that having a vast concentration of wealth tends to attract those in the business of steering money. Banks and other financial companies were overrepresented at the conference, accounting for more than a quarter of the portfolio, and globally they have lagged the broader market.

There were also more miners than one might expect, while technology companies, the best-performing industry over the past year, also were among the most under-represented at the conference compared to the S&P 500 Equal Weighted Index. Consumer discretionary and health-care firms were conspicuous in their absence.

The companies represented also have a more international slant, with the U.S. and India representing the biggest contingent and Japan, the U.K. and Germany rounding out the top five.In fact, the global footprints of the conference attendees may give the delegates their perfect scapegoat. Their worst performance occurred in May and in July, when trade-war rhetoric was at the worst. They may have had a word with U.S.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Oil industry in Davos: torn between Greta and TrumpOil majors are at the sharp end of the climate debate and face a bewildering balancing act to secure their futures.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Flight Shaming Isn’t Just a Problem for AirlinesThe World Economic Forum tried to mitigate the environmental impact of all those private jets traveling to and from this year’s conference in the Swiss town by giving them the option to fill up on so-called sustainable aviation fuel, which is designed to lower carbon emissions compared to normal flights. Many attendees who left the conference after the last session on Friday will nevertheless have had to take commercial planes that use conventional fuel.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: WEF: Corruption is a state of mind, and of the stateTransparency International has confirmed something we all know: globally, corruption is not improving. But for the first time, it has also examined the correlation between political funding and the index outcome. No surprises here either: the correlation is high. As for SA? Same old, same old. Tell that to this corrupt thieving ANC government! From a school in Namibia on the walls of Namibia’s Home Affairs.
Source: dailymaverick - 🏆 3. / 84 Read more »