View of the Day

Why we are strengthening portfolios with hard assets

The global economy is transitioning from a long period of falling inflation and interest rates to one of gradually rising inflation and interest rates. While we don’t think we’ll see this shift occurring rapidly, we do think the disinflationary forces of the past few decades are now fading or even reversing.

Is it safe for investors to relax?

Is it safe to relax? This is a question that many an investor is asking as they venture to the beach and switch off.  August has traditionally been the month of market snooze but can we really relax and expect little to happen?

Ten pillars of recovery investing that have stood the test of time

Recovery investing has come into its own in the past decade, becoming as recognised as value and growth styles following the credit crunch and subsequent financial crisis.

Recovery stocks have particular traits that investors must look out for. They are companies whose profits are depressed due to either economic or sector dislocation, poor management decisions, or a combination of both, and investors must find those that are poised to turnaround their profitability.

Tech’s not invincible – but I still like it

For a sector accustomed to getting headlines for its stellar growth and equity returns, this week felt a bit different. While Alphabet and Amazon delivered another set of expectation-beating quarterly results, Facebook, for the second time this year, crashed the party. 

Time to take stock, think about what we’ve learnt and revisit our bullish macro case for the tech sector. In short, I still like tech.

Vietnam may benefit from the trade war

The first salvos in a trade war between the US and China have been fired, with both countries implementing an array of provocative tariffs. Meanwhile, countries around the world are considering if they might end up as collateral damage. Vietnam, like many emerging markets, does robust trade with both economic superpowers (the US is Vietnam’s top export market while most imports into Vietnam come from China), and as global stock markets have fallen in part due to the uncertainty regarding trade, so too has Vietnam’s.

Europe- opportunity or threat?

With the recent political turmoil in Spain and Italy, it is understandable that investors have become nervous. Record outflows from European tracker funds over that period clearly displays the concerns that people are having. Clients are particularly asking about Italy given that local equities dropped 11 per cent in a couple of months, but we are in a good position for Europe to outperform global equities over the next six months.

Trade Wars: A new Hope…

One lesson we have learned from President Trump’s gyrating stance on trade thus far is that whatever looks certain today is likely to appear uncertain tomorrow. Months of hard-line rhetoric with European ministers, amongst others, was seemingly leading to an escalating list of tit-for-tat levies on key goods. As a result, there was widespread surprise when, following a White House meeting last Wednesday, President Trump and European Commission President Jean-Claude Juncker gave us a welcome respite.

Ten pillars of recovery investing that have stood the test of time

Recovery investing has come into its own in the past decade, becoming as recognised as value and growth styles following the credit crunch and subsequent financial crisis.

Recovery stocks have particular traits investors must look out for. They are companies whose profits are depressed due to either economic or sector dislocation, poor management decisions, or a combination of both, and investors must find those that are poised to turnaround their profitability.

Supportive policymakers open up Chinese equity opportunities

In a recent Weekly Insight, we noted that weakness in onshore Chinese equities was being inaccurately attributed to the ongoing trade war with the US. While Chinese currency moves can certainly be linked to US tariffs, we observed that the onshore stock market was in bear territory for very different reasons, including slowing economic activity in part linked to a slowdown in loan growth rates.