In this month’s update Ritu Vohora, Investment Director, reflects on the Q1 earnings season. It’s been exceptional so far, at least compared to expectations. Are we at ‘peak… Watch the video
Are today’s technology titans exploiting their market position without any attention to broader stakeholder welfare? Essentially, this is the implicit question being discussed in most media today.
Given the recent news flow, it certainly feels like technology has had a rough start to the year. In the past few weeks,… Read the article
This Saturday (April 14th) sees the 175th running of the Grand National, the most famous jump race in the world. With thrills and spills throughout its 4-mile, 4-furlong length, the Grand National is something of a national institution. Nearly 10 million people up and down the country are expected to… Read the article
In this month’s update Ritu Vohora, Investment Director, looks at the threat of trade protectionism on global… Watch the video
Stories in the media about fake news, Russian trolls, secretive organisations like Cambridge Analytica improperly using personal data to influence political elections – it all sounds like something out of an episode of House of Cards.
Despite Mark Zuckerberg and Sheryl Sandberg’s claims that Facebook will do better in the… Read the article
Since the start of 2016, the US stock market has rallied the best part of 35%, with the bulk of that coming since the election of Donald Trump. The corollary of this is that one of the most common questions we field from clients relates to American valuations and whether… Read the article
Today (March 22nd) is World Water Day which aims to focus attention on the importance of water not only in our daily lives, but also for the sustainable development of the global economy. With the world’s population continuing to rise hand in hand with urbanisation, global water demand… Read the article
In this month’s update Ritu Vohora, Investment Director, examines the implications of February’s spike in market volatility. The bull market is likely still intact, but we are entering choppier… Watch the video
China was one of the best performing emerging markets last year as the stockmarket soared. This result probably surprised many investors who are more familiar with gloomy warnings about the country’s slowing economy, overheating property market and rising debt levels.
The rally arguably reflected growing confidence about the… Read the article
The abrupt reversal of equity markets in the last few weeks has sent shivers down investors’ spines, particularly as momentum was the dominant factor behind the rally that preceded it. Time to panic? On the contrary, history shows that buying into short-term weakness has been a fruitful strategy for long-term… Read the article
In this month’s update Ritu Vohora, Investment Director, looks at the implications for US tax reform on equities. How much is priced in already and will the new fiscal stimulus provide a boost to US… Watch the video
In this month’s update Ritu Vohora, Investment Director, looks at what effect macroeconomic events this year could have on… Watch the video
When I sat down to write my review of 2016 I had to admit that it had been a tough year for smaller company fund managers as the sector’s median fund had underperformed the Numis Smaller Companies Index (NSCI) by 2.7%.
With a month to go in 2017, the median… Read the article
In this month’s update Ritu Vohora, Investment Director, looks at what has driven the ‘most hated bull market in history’ and asks how much further it has to… Read the article
Guest contributor: Jenny Rodgers, Investment Manager, M&G Multi Asset team
The stockmarket in the UK hit a new all-time high in early November, but it would be hard to describe the recent UK financial and business press headlines in recent months as unambiguously good news. What’s going on?
Mixed signals… Read the article
For the first few years after the 2008 financial crisis, I often only had one slide with me at presentations and this was it:
The chart shows the trend line since 1849 of the US stockmarket (the unbroken diagonal line above) increasing by 6.2% per annum (after inflation).… Read the article
In this month’s update Ritu Vohora, Investment Director, asks whether the environment is now more favourable for active… Read the article
The reflation trade has regained traction in recent weeks with global bond yields rising and renewed discussions in the US on tax and regulatory reform, promising a fiscal boost. Added to the mix has been rhetoric from central banks around the world on tighter monetary policy. Improving economic data and… Read the article
In this month’s update Siobhan Pandya, Head of Equity Markets Content reviews recent trends in UK small… Read the article
This year has not quite followed the script: investors were expecting improving economic growth and rising inflation to be accompanied by steeper yield curves, with the more defensive/quality stocks and so-called ‘bond proxies’ coming under pressure as bond yields rose. The strong rebound in value in H2 2016 was heralded… Read the article
There is no denying that the recent cryptocurrency boom resembles the one we saw among dotcom companies in the late 1990s. Celebrities then were taking equity stakes in start-ups in exchange for promoting them, and we are seeing a similar trend today.
In the late 1990s, over… Read the article
Earlier this year, data from the UK’s Continuous Mortality Investigation Mortality Projections Committee showed that life expectancy improvements have slowed dramatically. Initially thought to be a blip in the data, there is increasing evidence, both in the UK and in other developed countries, that this is a structural change in… Read the article
Last October, my colleague Tom Dobell wrote about the absurdity of how companies are forced to treat their long-term pension liabilities.
After another couple of reporting periods characterised by falling discount rates, I wanted to lay out in a slightly more mathematical fashion why I think Tom… Read the article
In this month’s update Ritu Vohora, Investment Director looks at what is driving the momentum in… Watch the video
Like the ghost in Charles Dickens’s “A Christmas Carol,” recent price action in Japanese equity markets has been an unwelcome echo of the past. Outperformance of stocks with more stable earnings streams has resembled the market dynamics that provided a headwind to value investors in the decade after the financial… Read the article
Is the era of cheap money coming to an end? In this month’s update Ritu Vohora, Investment Director, reviews central banks increasingly hawkish… Watch the video
Scary stats abound around the ageing population and many column inches have been dedicated to the burden this will place on the health service and the pension system. But older workers could prove to be the saviour of the workforce.
Andy Briggs, the government’s business champion for older workers, said… Read the article
Are political surprises and uncertainty now the new normal? It could appear that way after yesterday’s general election resulted in a hung parliament after the ‘dead cert’ Conservative majority predicted just seven weeks ago. The Conservatives have emerged as the largest party and are seeking to form a minority government… Read the article
Global Q1 2017 earnings delivery was the best quarter in over six years. In this month’s update Ritu Vohora, Investment Director, reviews the earnings outlook for the rest of the… Read the article
As expected, and as promised during his campaign, US president Donald Trump yesterday announced that the US will withdraw from the Paris Climate Accord, the 2015 agreement setting greenhouse gas (GHG) emission reduction targets for individual countries. One of the major achievements of the agreement was the near universality of… Read the article
As the General Election approaches, politicians on all sides will no doubt claim to be the best custodians of the UK economy. Brexit might be front of mind for many voters, but economic competence has always been a key vote winner – and loser. So for investors, what can history… Read the article
The election of Moon Jae-in as Korea’s new president is, we think, good news for shareholders in Korean companies, as we expect President Moon to drive further improvements in corporate governance standards leading to better returns for shareholders and ultimately higher share prices.
For… Read the article
The active-versus-passive debate is once again back in the limelight with the news this week of low-cost passive provider Vanguard’s launch of new website for personal investors. This simply adds fuel to the flames: figures from EPFR suggest that in the past 12 months, passive equity funds have… Read the article
For centuries, the parable of “The Blind Men and the Elephant”* has been used to illustrate how overemphasising a specific part of a complex situation can lead to the wrong conclusion, even if that part is indeed both real and important.
The same is true in the world… Read the article
M&A activity has begun 2017 on a positive note after falling in 2016. In this month’s update Ritu Vohora, Investment Director, considers whether the current level of activity is… Read the article
The UK stockmarket as a whole has performed very well over the last twelve months, despite the obvious disruption from the Brexit vote last June. A glance at the various indices shows that investors have paid particular attention to smaller companies – indeed it seems that the mantra has been… Read the article
Markets have reacted positively to Emmanuel Macron and Marine Le Pen going forward to the second round of the French presidential election on 7 May. Polls on the second round now show establishment figure, Macron, ahead of Le Pen by more than 10 percentage points. There’s an overwhelming likelihood of… Read the article
Stock exchanges have been at the forefront in the news recently not least following the recent failure of the proposed merger between the London Stock Exchange and Germany’s Deutsche Bourse. As in other areas of finance there is increasing focus on the need for greater transparency for investors… Read the article
Politics is important, but no-one knows what the outcome of the Brexit negotiations will be. In this month’s update Ritu Vohora, Investment Director, looks at what the facts are currently telling us about the UK economy and… Read the article
Fund managers naturally consider a range of environmental, social and governance (ESG) issues in their investment decisions – much like they have always taken non-financial factors such as corporate culture, geopolitics and regulation into account when considering investments. So ESG is not a new concept… but in recent years it… Read the article
What do Google and Facebook have in common with the recently listed Snap? Lofty valuations? Check. Internet companies? Of course. But perhaps less well known is their apparent apathy towards minority shareholders. Snap has the dubious honour of being the first ever US company to IPO shares that… Read the article
Global equities continued to rally in February driven by an improvement in both economic data and earnings expectations. In this month’s update, Ritu Vohora, Investment Director, looks at the prospect for earnings growth in… Watch the video
While 8 November 2016 will be mostly remembered for the surprise election of Donald Trump as US president, another momentous event was taking place in India at the same time. Narenda Modi, the country’s prime minister, announced the withdrawal of every Rs500 ($7.5) and Rs1000 ($15) banknote nationwide… Read the article
You’d have got good odds on a horse positively influencing South Korean corporate governance, something that now appears increasingly likely.
You may have read about the scandal under which a number of South Korea’s family-dominated conglomerates (‘chaebols’) are alleged to have made material contributions to Choi Soon-sil, a close friend… Read the article
Global equities started 2017 in a buoyant mood and in this month’s update, Ritu Vohora Investment Director, looks at sustainability of the equities rally. Is this just the result of the so-called ‘Trump boost’ or do the fundamentals suggest a different… Watch the video
When I blogged on this topic in February last year, I sounded a note of caution that 2016 was unlikely to be plain sailing for income investors. In the event, despite an uncertain start, income-seeking investors experienced another good year. Companies paid out £84.8 billion in ordinary dividends,… Read the article
A few months ago my colleague, Sam Ford, explored the magic of compounding in his excellent blog: The Greatest Shortcoming of the Human Race. In this post, I’d like to flip his ‘Power of Compounding’ on its head and explore ‘The Dangers of Discounting’.
The most conventional approach… Read the article
Stock correlations are now at their lowest level since the GFC in 2008, prompting a seismic change in the investor landscape and a more favourable, less constrained market backdrop for stock pickers. Until last year, there were long periods of high correlation – challenging for both active managers and anyone… Read the article
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Welcome to the M&G Multi Asset Team’s Allocation blog, previously known as the Episode blog. We have changed the name of our blog to resonate better with our readers in Europe, however, the content and purpose of the blog has not changed. The Allocation blog continues to aim to provide unique market perspectives from our dedicated team of experienced asset allocators.OK