The hunt for quality and resilience

The enormous economic shock resulting from the pandemic will exacerbate or accelerate the existing problems and imbalances facing many companies and countries. For investors, an even more granular approach will be required when choosing between winners and losers. In this environment, ‘quality’ and ‘resilience’ are likely to become even more important investment themes, especially against … Continue reading “The hunt for quality and resilience”

US profits: will they bounce back as quickly as investors think?

US earnings season is always a spectacle and this time around is no different. Well, no different but for one exceptional factor: Covid-19, and its effects on company profits. The businesses that make up the S&P 500 Index have started to tell us how they performed from January to March, a period of unprecedented operating … Continue reading “US profits: will they bounce back as quickly as investors think?”

Covid-19: why the tech giants have emerged as winners

While many businesses struggle to survive under the global lockdown, the largest technology companies remain afloat and in some cases are even thriving. Microsoft has reported a surge in usage of its cloud computing service Azure, as millions of people work from home. Amazon is hiring an additional 75,000 workers, on top of the 100,000 … Continue reading “Covid-19: why the tech giants have emerged as winners”

Downturns this deep can take a long time to recover from, financially and mentally

Before last week’s rebound, US stocks had lost around 25% since mid-February, as measured by the S&P 500 Index. Like many of you reading this, my savings have taken a big hit. I set up a junior ISA for both of my children in February, and that money has also fallen by around a quarter. … Continue reading “Downturns this deep can take a long time to recover from, financially and mentally”

Panic-selling creates opportunities in Europe

The coronavirus situation is developing rapidly. Italy is in lockdown, confirmed cases are rising across the rest of Europe and the US, and there is a huge global effort to contain the virus. On Thursday last week, European shares suffered their biggest one-day plunge since 1987. Panic appears to have gripped markets. However, as with … Continue reading “Panic-selling creates opportunities in Europe”

How should investors act in a crisis?

With markets reeling from the effects of coronavirus, Schroders’ Group CIO highlights what investors should focus on. Coronavirus is the latest threat to market harmony that once again poses a timeless question: how should investors act in a crisis? Whether you’re a fund manager, responsible for billions of pounds of other people’s money, or an … Continue reading “How should investors act in a crisis?”

Coronavirus: assessing the risks

The novel coronavirus (COVID-19) that emerged in China’s Hubei province late last year has now spread to more than 50 countries. The outbreaks in Japan, Korea and Italy are particularly serious, but the number of cases is climbing rapidly elsewhere. Initially, the stock market’s reaction to the virus was muted. Most investors appeared to believe … Continue reading “Coronavirus: assessing the risks”

3 reasons why coronavirus should not change your long term investment strategy

Markets last week finally woke up to the negative implications of the growing global spread of coronavirus. Initial views that it was largely a Chinese problem, with isolated cases elsewhere in Asia and the Middle East, left investors indifferent and markets held relatively firm, despite the daily rise in number of reported infections and deaths. … Continue reading “3 reasons why coronavirus should not change your long term investment strategy”

Private markets in a new world

The world is rapidly changing. Three forces will shape the future: technology, demographics and sustainability. The cost of such a transformation will not be cheap. However, private markets are uniquely placed to help fund and build this new world – creating numerous opportunities for investors. Technology has transformed our lives. Thanks to mobile devices and … Continue reading “Private markets in a new world”

The £19k cost of trying to time the market

“Buy low, sell high” – that’s every investor’s goal. However, it’s easier said than done. Especially if you’re trying to time the market, which is notoriously difficult, if not impossible. It can also be costly. Our research shows just how costly it can be when you get the timing wrong. Time in the market – … Continue reading “The £19k cost of trying to time the market”

Does the January effect really exist?

Is the first month of the year really a good time to invest?  January 2020 was either a good month or a bad month for investing. While 10 of the 23 countries in the MSCI World index of global developed markets generated a positive return, more than half lost money. Returns varied between +6.1% (Portugal) … Continue reading “Does the January effect really exist?”

Surprises in European equities

Why have European equities performed so well in 2019 and what are the prospects for 2020? For much of 2019, European equities were an unloved asset class, shunned by investors. At first sight, this was understandable – the region is growing only slowly, wracked by political tensions and wrestling with headwinds in vital sectors such as … Continue reading “Surprises in European equities”

Don’t lose your investment marbles in emerging markets

If one of your investments jumped 3,800% in less than a year how happy would you be? Ecstatic, probably. Now imagine how you would feel if 98% of these gains evaporated within a short few minutes. Utterly terrible, I’m sure. Well, that’s exactly what happened to shareholders in Hong Kong listed ArtGo last month  – … Continue reading “Don’t lose your investment marbles in emerging markets”

Deforestation leaves investors exposed

Owning companies linked to forest destruction risks major financial losses. But focusing on engagement and demanding transparency and supply chain discipline could bring rich rewards. Deforestation linked to growing commodities demand presents significant risk of loss for investors, but also opportunities to benefit by engaging companies and adding to pressure for stricter policy actions. Deforestation … Continue reading “Deforestation leaves investors exposed”

Investors must get used to an environment of lower growth

We will have to get used to an environment of lower growth. However, this is the kind of environment in which active managers will truly prove their worth. “Nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 … Continue reading “Investors must get used to an environment of lower growth”