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Some Thoughts on The US Election
There was an unusual sense of de-ja-vu as I woke this morning. I would usually avoid the temptation to check my smartphone, at least until after breakfast, however today was slightly different… It would seem…
Three key aspects to the Trump victory
There are three aspects to the Trump victory that RMG believe are important and worth thinking about today: He is going to pursue a reflationary agenda. This, coupled with a short term tailwind for both…
Looking Past the Election
To the relief of many, the US election should be over by this time next week. Not only will the US have a new President, but we will know who controls Congress and the Senate.…
Week in Review: order, order!
Fasten your seatbelt, folks. Despite the UK’s vote to leave the European Union back in June, the High Court has ruled that the Government does not have power to trigger Article 50 without parliamentary approval.…
Crunch Time in Bond Markets Make Equities Vulnerable
Since the post Brexit plunge in bond yields, we have been becoming more negative on bonds. Along with virtually everyone, except central bankers, we have been banging the drum of how insane negative bond yields…
Week in Review: More trick than treat
Technology companies have been getting into the Halloween spirit this reporting season. Tech giant Apple was flattered by some trickery in their third quarter results, having released the new iPhone seven days earlier than normal…
Can the world cope with a resurgent dollar?
There is no doubt that big swings in the value of the US Dollar have a big impact on global economic growth and also financial markets performances. Between June 2014 and January 2016, as the…
Market review: Back to the playground
Financial markets have been described as casinos, rollercoasters and merry-go-rounds. Recently, though, they’ve been more of a seesaw. The playground favourite was much in evidence this week. As the pound peaked on Wednesday, the FTSE…
Sterling Getting Trashed – What Happens Next?
After another horrible week for Sterling on the foreign exchange markets, it has become all too easy to be overly bearish. There can be little doubt that the UK faces unprecedented political challenges in exiting…
Market review: Brexit bites back
Was this the week that Brexit finally bit? After smashing through 7,000 last week, the FTSE 100 began where it left off, rising to an all-time intraday high of 7,124.69 by Tuesday lunchtime. But as…
Global Convergence
The idea of convergence in economics gained currency in the 1990s on the back of the theory poorer countries’ per-capita incomes tend to grow at a faster rate than those of richer economies. Hurdles include…
Market Round Up – The Calm Before the Storm
Despite a calm exterior in terms of broad market price action, the under currents remain strong. The UK remains front page news with the Pound hitting multi-decade lows. However, it is the more subtle changes…
The political implications of the referendum on the investment company sector
How BREXIT might affect the underlying performance of investment company portfolios over the long-term remains to be seen. In these early days, equity markets are holding up well, up about 5%, and the sector’s exposure…
Week in review: The best of times and the worst of times
It was a week of contrasts. Sterling fell to its lowest level against the dollar since the mid-1980s, and its lowest against the euro in five years. But it was also a week in which…
Chart of the Week Shows Record Extreme Valuation for Bonds and Equities
We finally got round to reading the Annual Long Term Asset Return Study published by Deutsche Bank. As always, this is a little treasure trove of charts and information and well worth the time spent…
Week in review: A crude awakening
Fears over the financial health of Deutsche Bank flustered investors at the start of the week. But signs that energy prices might be rising from their slumber provided some solace, resulting in a positive week…
Europe: A contrarian investor’s view…
The UK’s referendum on membership` of the European Union has produced very little, so far, in terms of concrete change – instead it seems to have become the most bitterly fought contest to see who…
Active Management
The main criticism of active management is that the cost of performance is expensive relative to passive investing and that most active managers underperform. But funds which have a high “active share” typically outperform. “Active…