Investment & Securities Industry Changes to adapt to Evolving Marketplaces, 1-7-2007
Both in the U.S. and abroad, the investment business was booming as 2006 came to a close. Many indexes, including the Dow Jones, hit new record highs. Investment markets have clearly rebounded, regaining ground from spectacular losses in 2000-2002. However, several threats remain in the background, including worries about potential inflation, energy costs, terrorism or political upheaval, as well as persistently high U.S. federal deficits, and high levels of consumer debt. The most notable changes in the investment markets are detailed in a recent report by Plunkett Research, Ltd. Some examples of the trends analyzed include:
- Offshoring of the Financial Workforce.
Much of the U.S. financial services industry's workforce is expected to be displaced by the practice of "offshoring," or movement of a significant number of jobs to other countries in order to cut costs. U.S. financial services-related companies will move tens of thousands of jobs to foreign countries including India, China, the Philippines, Canada, the Czech Republic, Mexico, Australia, Brazil and Russia, among others.
- Private Equity Investments Roar Ahead as LBOs Reach New Levels.
Today's environment of relatively low long-term interest rates is a boost to "leveraged buyouts," or LBOs, providing private equity firms with a significant advantage. As private equity firms have become larger, they have become more diverse in the types of investments they are willing to make.
- The Investment World Keenly Watches Markets and IPO Activity in China.
Investors the world over are caught up in the excitement over the economic boom in China. This growth is providing myriad opportunities, including IPOs that debut the stock of Chinese firms on the Chinese market. Major exchanges from the NASDAQ to the London Exchange (LSE) to the NYSE are vying for listings of the largest Chinese companies.
To find out more about these exciting trends and more, check out Plunkett's Investment & Securities Industry Almanac 2007, just released, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett's completely up-to-date online database!
About Plunkett Research, Ltd.
Plunkett Research, Ltd. is a leading publisher of complete business research and analysis resources, designed to enable professionals in marketing, research and finance to access complete trends analysis, statistics, technology analysis and financial analysis of the world's most exciting industries. For more information, visit www.plunkettresearch.com, or call 713.932.0000.