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”

The comfort of strangers: investors should look to the less familiar

Adaptation is necessary when an environment becomes less favourable. So, as the global outlook assumes a gloomier cast, we believe investors should look beyond the comfort of conventional asset classes and bolster their portfolios with less familiar – and less correlated – assets. Secular stagnation? Recent headlines provide no shortage of alarming developments: a lurch … Continue reading “The comfort of strangers: investors should look to the less familiar”

The six biggest bull runs since 1962 (and their corrections)

The current bull market in US stocks started in March 2009 at the height of the global financial crisis and is the longest in recent history, beating the rally between July 1962 and May 1970 by over four years. At the time of writing, the bull market is still going. US stocks are up more … Continue reading “The six biggest bull runs since 1962 (and their corrections)”

Disruption from climate change is only just beginning for investors

Financial markets remain unprepared for the extent of disruption that climate change will bring, according to a new report. In September, the United Nation’s Principles for Responsible Investment (PRI) – a network of investors whose members include 500 global asset managers – released a report concluding markets have not priced in the coming policy response … Continue reading “Disruption from climate change is only just beginning for investors”

It really is a digital world

Over the last ten years of recovery from the boom and bust of the western banking crash, shares have performed well. World equities have produced a return of 155% over the decade. The years have been characterised in the advanced world by an unusual combination of low interest rates and low inflation. Cheap imports from … Continue reading “It really is a digital world”

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”