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Consider Last Week’s Correction a Clear Warning
We suspect that most experienced investors fully expected a correction in equity markets at some point (markets don’t go up in a straight line forever), however the ferocity and damage caused by the recent sell…
Week in Review: Meltdown!
It’s been a while, but share-price volatility is back – and how! This week, the world’s main equity markets plunged sharply on Monday, bounced briefly mid-week, then slumped again on Thursday. The S&P 500’s 4.1%…
A Reality Check
Alex Scott, Chief Strategist, Seven Investment Management (7IM) For the first time in over a year, markets have fallen sharply. Keeping a cool head about markets is important when others are panicking. We believe that…
Small is mighty
Europe became the flavour du jour As global economies emerged from a searing financial crisis at the turn of the decade, the US and UK seemed to pull ahead of their European cousins. Earnings there…
Equity Markets Finally Noticing the Price Action in Bond and FX Markets
We have been highlighting, for a number of weeks, the prospect of higher bond yields and suggesting that equities should eventually adjust to the downside in such an outcome. And for weeks, we looked like…
Week in Review: The hangover kicks in
Many of us are celebrating the end of what has been a bleak and joyless month. Pay day has come around at last and it’s time to dispense with ‘dry January’, or forget about those…
‘Yield beta’ – perhaps the most important consideration if you own any inflation-linked bonds For Professional Investors Only
Many investors have exposure to inflation-linked bonds, whether it’s within a diversified fixed income portfolio or a multi asset portfolio. The difficulty is that inflation-linked bonds and conventional bonds behave differently. Inflation-linked bonds provide you…
The End of the Dollar Standard Would be a Big Deal
We’ve all seen charts similar to the chart below, showing US bond yields, and the extraordinarily orderly decline in yields over the last 30 years or so. On the chart, we have marked the trend…
Week in Review: A shared future
All eyes were on Davos, a small town in the Swiss Alps, as world leaders, business people and other VIPs congregated to share perspectives on the theme of “Creating a Shared Future in a Fractured…
VIDEO MARKETS UPDATE – JANUARY 2018
In this update, Mark Whitehead, Portfolio Manager, assesses the change in US federal income tax and opportunities for dividend growth in the tech sector. WHAT CAUGHT YOUR EYE THIS MONTH? In the US, the first…
Are choppier waters ahead?
Alex Scott, Chief Strategist, Seven Investment Management In many ways, 2017 was far better than expected. The global economy certainly performed ahead of expectations, showing decisive and synchronised growth for the first time in several…
Week in Review: One in the eye
“When a man is tired of London, he is tired of life,” said Samuel Johnson. The legendary lexicographer might have been speaking of bankers (both male and female), as comments this week indicated that reports…
Underlying fragility of the US corporate sector For Professional Investors Only
Written by Mike Riddell As we’ve mentioned in recent months, total risk premia on US corporate bonds is at its lowest level ever. Meanwhile, the debt that US corporates have loaded onto their balance sheets has steadily…
2018 – a year for active management
2017 saw a previously US-centric and relatively anaemic economic recovery from the financial crisis broaden out and gain vigour. The Trump presidency has so far proved to be mostly bun and no beef, while the…
Watch the Bond Markets as Pivotal Areas are Being Tested
Some key levels are definitely in sight for the bond markets. We will have to just wait patiently to see whether yields break out on the upside (which of course means bond prices going lower),…
Gilts – The Bear Market has Begun
The Gilt index is an important benchmark for most UK fixed income investors, whatever their risk appetite. 2017 was a year of modest returns (+2% for the iBoxx Gilt index) but the fact is that…