Movin’ On Up

For UK investors all eyes were on the General Election in June, but despite the surprise result, markets took it in their stride. Of more interest to us, than the ongoing domestic political noise, has been the move of Central Banks over the month towards tightening monetary policy. In the US, the Federal Reserve raised … Continue reading “Movin’ On Up”

A-Shares: All Quiet on the Eastern Front

Two years ago this month (June) China’s A-shares (shares that trade on the Shanghai and Shenzhen stock exchanges) reached their highest level since the global financial crisis, after rocketing almost 80 per cent in six months. The market then slumped more than 43 per cent over the subsequent 11 weeks. Shares of companies that are … Continue reading “A-Shares: All Quiet on the Eastern Front”

Does low volatility mean a shock lies in store for investors?

Despite the many economic and geopolitical risks in the world today, volatility in asset markets has been remarkably subdued. The Vix index, the market’s so-called fear gauge, has recently fallen to a reading of around 10. This is exceptionally low compared to long-term norms. and only just above the all-time low of 9 that it … Continue reading “Does low volatility mean a shock lies in store for investors?”

UK election: what a hung parliament means for markets

Following the surprise UK general election result, Schroders’ Alix Stewart,  David Docherty & Azad Zangana, consider the implications for the economy and markets.   The UK general election has resulted in a hung parliament, with no party commanding an overall majority. The Conservatives have emerged as the largest party and will likely seek to form … Continue reading “UK election: what a hung parliament means for markets”

After the FTSE 100’s 37% return, should I still invest?

The FTSE 100 has soared in the past year and reached a new all-time high. Is the UK stock market still good value? The rise in the FTSE 100 since a low last February has been remarkable. The index was up 33% between 11 February 2016 and mid-January 2017. Including dividends, the index returned 37%. … Continue reading “After the FTSE 100’s 37% return, should I still invest?”

European private equity: 2017 outlook

At the start of 2016 there was little in the tea leaves to foretell of imminent global political upheaval. The private equity outlook was, for many, ‘business as usual’. The previous year’s shocks had been mostly limited to the Syriza Party’s electoral victory in Greece and a Chinese renminbi devaluation. Fast forward to the end … Continue reading “European private equity: 2017 outlook”

How big was the global Trump rally – and where does it leave valuations?

The prospect of a Trump presidency has fuelled a rally in stockmarkets. Schroders experts explain why and look at the latest valuations.  Stockmarkets rarely rally in the face of political and economic uncertainty. The combination of Brexit, Donald Trump’s election, the return of inflation and prospect of higher interest rates would normally undermine demand for … Continue reading “How big was the global Trump rally – and where does it leave valuations?”

Japan traps to avoid in 2017

Discerning equity investors who focus on quality companies not temporary tailwinds can find pockets of growth in Japan the coming year. In the month since Donald Trump’s election upset, Japan’s Topix climbed 17% in US dollar terms. Almost half of this performance came from a resurgent dollar. Given the close historical correlation between Japan’s stock … Continue reading “Japan traps to avoid in 2017”

How will investments perform in 2017?

Despite political uncertainty, and some notable surprises, UK investors have largely benefitted from some positive trends during 2016. But what does 2017 hold in store for the major asset classes? Equities It remains to be seen whether Donald Trump’s widely-anticipated reflationary policies will pass through Congress. If his planned infrastructure spending aimed at igniting growth … Continue reading “How will investments perform in 2017?”

Market predictions for 2017

After a turbulent and unpredictable 2016, Charles Stanley’s Chief Investment Officer Jon Cunliffe takes a look at what could be in store for global markets in the year ahead. If there is one lesson to learn from 2016, it is to expect the unexpected. Britain’s vote to leave the European Union and the election win … Continue reading “Market predictions for 2017”

How low rates affect stockmarket returns

History offers lessons on how low rates – and equity market valuations – might affect returns. The world has been living with low interest rates for eight years but such periods are not new. Both the US and UK saw rates below 1% for most of the two decades spanning the Second World War, while … Continue reading “How low rates affect stockmarket returns”

A weak yen boosts Japanese equity markets

Equity markets across Asia generally declined during October, dampened by uncertainties over the outcome of November’s US Presidential election and a drop in the price of oil. In comparison, Japanese equity markets rose relatively strongly during October, boosted by a weakening in the value of the yen. The Nikkei 225 Index rose by 6.1%, while … Continue reading “A weak yen boosts Japanese equity markets”

Forbidden fruit

There are unusual, even bizarre, aspects to the news that the European Commission has ordered Ireland to claw back €13 billion in back taxes from Apple. The figure represents the difference between Ireland’s standard corporation tax rate and the somewhat smaller figure paid by Apple over the past quarter-century. First, the Irish Government has decided … Continue reading “Forbidden fruit”

China’s Black Monday – one year on

This week marks the anniversary of last year’s stock market crash that some have dubbed China’s Black Monday. Shanghai shares fell 8.5% on August 24, triggering losses on exchanges around the world and causing mayhem in currency and commodity markets. Apart from the financial losses, the market meltdown damaged the reputation of China’s policymakers. The … Continue reading “China’s Black Monday – one year on”