View of the Day

Do you prefer man or machine when it comes to your money?

I was recently asked to take part in some radio interviews about the growing role of technology in financial services.

My response was that while technology can and should make our industry more productive, and therefore accessible to more people, it can’t and won’t do everything.

Why are investors avoiding the opportunities that Brexit presents?

One of the timeless truths about investment is that retail investors arrive too late in a market rally.

Over decades of investing, I have often witnessed investors leaving markets at the point of maximum opportunity, for example, during the global financial crisis, and now it looks as though UK investors are avoiding the opportunity offered to them by Brexit.

How investors are helping fight climate change

“We have not come here to beg world leaders to care...We have come here to let you know that change is coming, whether you like it or not.”
Greta Thunberg

Schools Strike for Climate activist Greta Thunberg is making waves with her message for political and corporate leaders.

Who will pay as the US-China trade war intensifies?

The latest developments suggest that trade tensions between the US and China will be more protracted than expected. The US recently announced that it is raising tariffs on $200 billion of imports from China to 25% from 10%, and China has responded by increasing tariffs on $60 billion of imports from the US.

Are you at risk of bypassing the world’s fastest-growing regions?

Emerging markets are home to some of the fastest-growing economies in the world.

Recent research by Templeton Emerging Markets Investment Trust looking at investor mindsets shows that UK investors are increasingly looking to emerging markets for investment opportunities, as uncertainty in the UK drives them to look for new avenues for growth.

FAANG stocks bite back

For a decade, a select group of US growth stocks, known collectively as the FAANGs, were at the vanguard of the global bull market. All that changed last year, when a mix of political scandal (Facebook), poor Apple results and fears of monetary tightening led to a major sell-off.

Although results for the FAANGs this quarter have been mixed, since the end of December the broader trend has been towards recovery for these large market-beating companies.

European equities: the next Cinderella story?

European equities are trading at five-year valuation lows owing to growth fears and record fund outflows.

However, lost among the headlines is the fact that Europe is home to many of the world’s leading businesses. Although growth has slowed, it has not fallen off a cliff.

Market uncertainty and unease represent a window of opportunity to purchase companies still wearing tattered rags, whose fortunes are set to change like the fairy-tale princess.

Ring cycle: three forces move markets

Risk assets have staged a remarkable rebound from the dark days of December, but how long can the rally last?

In taking a macro approach to the cyclical outlook for asset markets, I often think in terms of there being three main macro factors for markets – the business cycle, the liquidity cycle, and the political cycle. Today, each cycle is global and the three influence one other, but each has its own key driver.

Feeling exuberant? Beware!

Exuberant global equity markets suggest optimism on economic growth and corporate earnings, but such expectations are likely to be disappointed.

Recent stellar gains – global stocks are up more than 10% so far this year – mask the fact that the world economy is not out of the woods yet.