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UPDATE 1-Draghi effect to drive surge in Italy's financial markets - Morgan Stanley


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LONDON, Feb 17 (Reuters) - Mario Draghi’s appointment as Italy’s prime minister will provide a big boost to the country’s financial markets, Morgan Stanley said on Wednesday, predicting a major improvement in the country’s closely-watched bond spreads and a double-digit outperformance by its stock market.
Draghi, a former European Central Bank chief feted in Italian media as a national saviour, promised sweeping reforms to help rebuild Italy in a speech to the Senate on Wednesday ahead of a mandatory confidence vote in his government of national unity.
Morgan Stanley said the halo effect would narrow the BTP bond spread - the premium investors demand to hold Italian government bonds rather than AAA-rated German debt - to 85 basis points by June from its current 90 bps spread. In an optimistic case, it could fall to 55 bps before the end of the year. ....

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Domestic Diversification Made Easy: A Model Portfolio Solution


January 15, 2021
Domestic equities are ready to turn in solid performances again this year. Advisors can put factor-based approaches on their side with the right model portfolios.
Take the case of the WisdomTree Core Equity Model Portfolio, which features 11 exchange traded funds spanning a wide array of U.S. equity concepts.
“This model portfolio is designed for growth-oriented investors with a long-term horizon looking to maximize long-term potential for capital growth through a globally diversified set of equity ETFs,” writes the issuer.
This model portfolio is positioned to capitalize on some important trends that emerged late last year.
“Relative to the All Country World Index (ACWI), we maintain our over-weight position in U.S. equities going into 2021. 2020 marked the eighth year of the past nine in which U.S. equities outperformed their international peers,” according to WisdomTree research. “The year was highlighted by the continued dominat ....

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