WSJ: North Africa Primed For Economic Growth Spurt

By SIMON CONSTABLE

For those looking for a sunny economic outlook, it might be worth a trip to North Africa.

Economic growth in Egypt, Morocco and Tunisia could surge as high as 6%-a-year, according to a new report from London-based firm Capital Economics. But they will only achieve that level with much-needed economic reforms the report’s author Jason Tuvey notes. See original story here.

Morocco

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WSJ: Why You Should Worry About Your Fund Manager’s Love Life

By SIMON CONSTABLE

When managers of hedge funds get divorced or married, it’s bad news for their investors. Their asset returns are likely to suffer. Worse still, the pain could last years.

That is the conclusion from a working research paper by academics at the University of Florida and Singapore Management University.

While the general news—that either event is distracting enough to lower job performance—might seem obvious, the paper goes further by answering the important questions: How much do investment returns suffer, and over what period? In short, returns get hit a lot, and the dip is long.

“We find that money managers significantly underperform during a divorce,” states the paper, “Limited Attention, Marital Events, and Hedge Funds,” by Yan Lu,Sugata Ray and Melvyn Teo. “The distraction induced by a marriage has a similar effect.” Read more here.

Cupid

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WSJ: What is a Bear Market?

By SIMON CONSTABLE

What do investors mean when they talk about a bear market? It depends on whom you ask.

Many say it’s when stock indexes drop by at least 20% in a short time. Some specify a two-month period. Others, however, see it differently. See original story here.

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