Will it be smooth sailing for markets until the end of the year?

Schroders Keith Wade & Aymeric Forest look at whether equities can sustain their stellar run in view of the coming reduction in central bank liquidity, geopolitical tensions, currency moves and stretched valuations? Equities underpinned by solid synchronised global growth The global economy is on a firm and synchronised upward trajectory, which is increasingly industrial-led and underpinned … Continue reading “Will it be smooth sailing for markets until the end of the year?”

Back to Basics: Investing is a long term game

Believing that ‘now’ is the most difficult point in history to make sense of markets is one of the biases which investment professionals can pick up from their extreme proximity to the volatility, uncertainty and surprise that go with investing money. The cure to these jitters is just to step back and review some of … Continue reading “Back to Basics: Investing is a long term game”

Bitcoin – instant riches?

Bitcoin is in the news. If you had bought some of this crypto currency at outset you could now cash in a very large profit. Some think that if you bought it at today’s elevated level you could still be in time to make a large profit going forward. It is not something Charles Stanley … Continue reading “Bitcoin – instant riches?”

How will central bank tightening affect emerging market bonds?

Investors are worried; they’re hearing noises from the US Federal Reserve and the European Central Bank about reducing balance sheets and hiking rates. They are wondering whether that will have an impact on emerging markets and on Asian bonds. In the past, they’ve been right to worry. Generally, when central banks start tightening, it does … Continue reading “How will central bank tightening affect emerging market bonds?”

Global liquidity and emerging markets

Emerging markets have benefited from an extremely accommodative environment but global liquidity conditions are becoming less easy than they used to be. Today we find ourselves in a world where central banks are reviewing their unconventional stimulus measures. The European Central Bank (ECB) is discussing tapering quantitative easing (QE) while the Federal Reserve (Fed) is … Continue reading “Global liquidity and emerging markets”

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?”

Volatility and lower yields in June

Share prices in the UK plunged in June following the UK’s unexpected decision to leave the European Union (EU). In the much-discussed referendum, a narrow majority voted in favour of Brexit, triggering turmoil across global financial markets. In the UK, gilt yields posted sharp declines, the pound plunged to a three-decade low against the US … Continue reading “Volatility and lower yields in June”