View of the Day

Veganuary: investing in the vegan boom

With organisers expecting up to 350,000 people to take part in Veganuary this month, it’s clear that people are being far more selective about what they eat – not only to benefit their health and well-being, but as a way to combat the threat of climate change.

Emerging markets: winds of change that carry good news for investors

Good corporate governance is integral to a company’s sustainability. A healthy system of controls, incentives and values, reflected in features such as a majority-independent board, well-designed executive remuneration scheme and sensible capital allocation framework, should enforce discipline on management to steer the business for the long haul.

How will the world look in 2030?

At this time of year, many fund managers make predictions for the 12 months ahead. But we encourage investors to have longer horizons. If we are considering what will shape investment performance, we actually need a 2030 vision – to think of what will shape the world in the coming decade and not just the next 12 months. 

Drones delivering takeaways, cheap space flights, nanobot health technology, skyscraper farms and underground parks – the world will look very different. 

Investors should expect an active renaissance in the new decade

The surge in popularity of passive investment strategies has been one of the most notable developments in markets since the financial crisis. This has led to frequent – and often intense – debate over the merits of active investing. However, as the global economy moves into the next phase, investors may be forced to re-evaluate the use of passive investments – as well as the expected returns.

Nine tips for beating the retirement blues

The season for overindulgence is behind us for another year, we’re back at work and the January blues have set in. As we get back on track with better lifestyle habits this month, it’s also a good time to reflect on the impact that a lifetime of financial overindulgence can have on retirement plans. 

Will there be hot war in the Middle East?

Markets thought that they knew that Donald Trump would not go to war in the Middle East. He had promised the US that he would bring troops home and avoid entanglement in foreign wars, which were easy to enter and difficult to end.

Investing in quality: a timeless approach?

Warren Buffett’s widely read annual letters to Berkshire Hathaway shareholders offer a fascinating insight into his investment philosophy. Often, these shareholder letters contain information that is particularly valuable in understanding how Buffett has managed to deliver such incredible long-term returns for his investors.

Having analysed his letters, we believe the following extract is worth noting:

Politics to remain a potent force in markets in 2020

From a financial markets perspective, 2019 was a year very much dominated by politics. The pound and UK government bonds both had a particularly volatile year as MPs fought over Brexit. Sterling fell to below 1.20 versus the US dollar for the first time since 2016 and the yield on the 10-year UK gilt hit a record low of just 0.34%, as Brexit caused a second UK prime minister to resign amid a deadlocked Parliament.

Are you optimistic or pessimistic about UK opportunities?

It is no surprise that in the UK the twists and turns of the Brexit saga have seen the equity market and sterling move in and out of panic mode, while GDP growth has struggled as the effects of Brexit stockpiling, apparent ahead of the original 29 March 2019 Brexit deadline, wore off and consumer sentiment dipped.