Covid-19: the inescapable truths faced by investors

Investors will need to be more agile than ever as Covid-19 reinforces many of the trends driving the world economy prior to the outbreak. “At the beginning of the plague, when there was now no more hope but that the whole city would be visited; when all that had friends or estates in the country … Continue reading “Covid-19: the inescapable truths faced by investors”

Looking back at the markets through April

A selection of articles looking back through the markets last month. Global Market Review Painful consequences Following March’s collapse in share prices, global stock markets made a partial recovery in April, although most major indices still sustained double-digit losses compared with the start of the year. As the coronavirus pandemic continued to cut a swathe … Continue reading “Looking back at the markets through April”

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”

Looking back at the markets through March

A selection of articles looking back through the markets last month. Global Market Review March Meltdown The extended bull run came to an abrupt end in March as the coronavirus continued to spread into Europe and America, and a collapse in confidence pushed share indices into bear-market territory. Investors suffered exceptionally high levels of volatility … Continue reading “Looking back at the markets through March”

The importance of forecasting humility

It is natural to want to rush to judgement about the long-term changes the coronavirus pandemic will bring, whether in an attempt to get ahead of the game or simply impose some order amidst the chaos. But as understandable as that impulse is, it can also be dangerous, allowing highly speculative claims to circulate and … Continue reading “The importance of forecasting humility”

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”

Coronavirus to spark “severe” global recession

The coronavirus is having a severe effect on global economic activity and amidst considerable uncertainty we have attempted to gauge the impact and updated our forecasts. We now expect to see the world economy contract this year by 3.1%, before rebounding by 7.2% in 2021. The forecast incorporates a severe recession in the first half … Continue reading “Coronavirus to spark “severe” global recession”

Looking back at the markets through February

A selection of articles looking back through the markets last month. Global Market Review Investors take fright as coronavirus takes hold As the spread of coronavirus gathered pace across the world during February, investors became increasingly concerned that the economic impact could trigger a global recession.  “Central banks are coming under pressure to respond to … Continue reading “Looking back at the markets through February”

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?”

Looking back at the markets through January

A selection of articles looking back through the markets last month. Global Market Review Coronavirus hits investor sentiment Investor sentiment was initially buoyed in January as the US and China signed their interim trade deal, driving US share indices to new all-time highs. However, major global equity markets ultimately ended the month in negative territory … Continue reading “Looking back at the markets through January”

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?”

Could the coronavirus derail the global recovery?

China is acting fast to contain the spread of coronavirus but the risk of economic disruption is high.  Concerns over the spread of the coronavirus are escalating as the death toll has jumped to 81 with 2,744 confirmed cases worldwide (as at 11:00 GMT, 27 January). Travel restrictions on about 40 million people around Wuhan, … Continue reading “Could the coronavirus derail the global recovery?”

Are we witnessing the US dollar’s fall from grace?

A world in which money is scarce might appear to be a far-fetched idea. But for US banks in the business of taking deposits and making loans, this has become a reality. The chart below shows a global shortage of US dollars has emerged, shown in the left hand vertical axis in  billions. It has … Continue reading “Are we witnessing the US dollar’s fall from grace?”

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”

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?”