Looking back at the markets through September

A selection of articles looking back through the markets last month. Global Market Review What next for Brexit? The long-running Brexit saga took a new twist in September as the clock continued to tick towards its Hallowe’en deadline. After being suspended earlier in the month, the UK Parliament was hastily reconvened towards the end of … Continue reading “Looking back at the markets through September”

Why as an investor I’m looking through Brexit fears

Following the twists and turns in Westminster of the past few weeks I expect many more market participants will simply place UK equities in the “too difficult” basket. Anecdotal stories of overseas investors selling their last UK stocks could start doing the rounds again. Brexit and political uncertainty have been a drag on UK equities, … Continue reading “Why as an investor I’m looking through Brexit fears”

Has value investing been disrupted?

Disruption is a major theme in stock markets today with companies such as Amazon and Uber challenging the traditional approach to their respective industries. Such companies are an example of so-called “growth” stocks, with investors attracted by their prospects for expansion and future revenue growth. Investors in “value” stocks, in contrast, focus less on a … Continue reading “Has value investing been disrupted?”

How does geopolitics impact investment returns and what can you do about it?

Schroder’s economists have analysed the effect geopolitical risk can have on investors’ portfolios. Should investors simply hold their nerve during volatile times? Or is it better to entrust fund managers able to take a more dynamic approach? Geopolitics can significantly impact investment returns; whether it’s trade wars, actual wars, populist politicians or terrorist attacks. Geopolitical … Continue reading “How does geopolitics impact investment returns and what can you do about it?”

Ten things every investor needs to know about offshore wind power

The solar and onshore wind industries have long been areas of focus for climate change investors, but offshore wind has always lagged behind because of its higher cost. However, that is set to change, with substantial growth likely in the sector over the coming years, as offshore wind approaches cost competitiveness with conventional electricity generation. … Continue reading “Ten things every investor needs to know about offshore wind power”

What are the different styles of investing?

When it comes to share investing there are plenty of theories about what might produce the best returns. There is no single right answer to investing. People’s needs differ. People’s attitudes to risk vary. Market moods swing, making it difficult to be sure which type of investment will do well. All these uncertainties do not … Continue reading “What are the different styles of investing?”

Unwise to chase the rally in European equities

Although the eurozone economy is struggling, European assets have performed strongly in recent weeks as policymakers at the European Central Bank (ECB) have made it clear that they are ready to implement another round of monetary stimulus. Nevertheless, we remain pessimistic about the eurozone economy’s prospects and sceptical of the ECB’s ability to stimulate growth. … Continue reading “Unwise to chase the rally in European equities”

Quantitative easing returns to the European Central Bank

History seems set to repeat itself in Europe. Less than a year after the European Central Bank (ECB) wound up its bond-buying programme, the words ‘quantitative easing’ (QE) are back. ECB President Mario Draghi sent the latest signal about the Bank’s intentions at last month’s Sintra conference for central bankers in Portugal. He made it … Continue reading “Quantitative easing returns to the European Central Bank”

Why I’m backing a consumer comeback in Europe

Worries over slowing global growth and rising trade tensions hit European share prices hard at the end of 2018. While early 2019 saw a rally, there remains considerable scepticism over the prospects for the European economy and its listed companies. I think much of this scepticism is misplaced and the role of the European consumer … Continue reading “Why I’m backing a consumer comeback in Europe”

Are profits no longer required?

The number of loss-making companies listing on the US stock exchange is approaching a 30-year high, according to new research. Indeed, the average company going through an IPO is now making a loss (IPO stands for initial public offering, the term used when a private company goes public by listing on the stock market). Perhaps … Continue reading “Are profits no longer required?”

European equities – interesting times

“There is a Chinese curse which says ‘May he live in interesting times.’ Like it or not, we live in interesting times.” Robert F. Kennedy’s 1966 quote sums up what it has been like to be a European equity investor since the UK voted to leave the European Union in June 2016. While politicians have … Continue reading “European equities – interesting times”

Investors should note the approaching tipping point for renewable energy

The efforts to mitigate climate change may be approaching a tipping point. The wave of support for Green Party candidates in last month’s elections for the European Parliament prompted a plethora of articles highlighting the cost of dealing with climate change and the regressive implications for those on low incomes. Subsidies to promote renewable energy … Continue reading “Investors should note the approaching tipping point for renewable energy”

Mr Trump’s torrent of trade tweets

Financial markets are being buffeted by President Trump’s tweets on trade. What are the short and long-term implications of this new style of policy making in the US? Tactical tweeting Since the summer of last year, investors have had to look at Twitter far more often. President Trump has used this form of social media … Continue reading “Mr Trump’s torrent of trade tweets”

Creating a virtuous circle in residential investing

How do we balance effective residential investing with being sensitive to tenants’ needs and to climate change? With the right approach, they can be far more harmonious that you might think. In fact, we would argue that they are intrinsically linked. Using change as a lens We have identified four global forces for change that … Continue reading “Creating a virtuous circle in residential investing”

Still on our way in May, watching for winners

Investing is a curious mixture of art and science. It is a world of phenomenally fast algorithmic trading, supplemented with old-fashioned sayings and adages concocted decades ago. Behavioural finance studies draw attention to the importance of ‘heuristics’. These are mental shortcuts or rules of thumb that ease the cognitive load in decision-making. The saying “sell … Continue reading “Still on our way in May, watching for winners”