In this month’s video, Investment Director, Ritu Vohora looks at the recent ‘buyback wave’ fuelled by corporate tax cuts. Do share buybacks only benefit company executives or do they also create long-term value for shareholders?
Equity markets extended their year-to-date rally in March, making Q1 2019 the second strongest quarter… Read the article
In this month’s video, Investment Director, Ritu Vohora looks at the evolution of the FTSE 100 over the past 35 years and whether UK equities are a buying opportunity
As 2019 begins, it inherits a long list of risks and uncertainty from a tumultuous 2018, that ended on a painful… Watch the video
The perceived opposing investment styles of value, income and growth is a perplexing concept. To me, it conjures up imagery of investors huddled into the extreme corners of an equilateral triangle.
A lone voice pipes up: … “I’m a ‘quality’ investor. In which corner do I… Read the article
In this month’s video, Investment Director, Ritu Vohora reflects on the return of volatility in 2018 and what it means for equities as we look ahead to the new year.
Despite a modest equity rebound in November, as we draw to the close of 2018, it’s on track to be… Read the article
In this month’s video, Investment Director, Ritu Vohora looks at October’s frightful market sell-off and the return of bearish sentiment. Is this a healthy shake-out or the start of a more prolonged downturn?
Spooky October lived up to its frightful reputation, proving to be a turbulent month for equities, with the… Read the article
Earnings disappointments from the likes of Facebook has sparked concerns whether the stupendous growth of tech stocks can continue. After a decade wins, are the FAANGs losing their bite? In this month’s update, Ritu Vohora, Investment Director looks at whether this could be a return for… 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
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 what has driven the ‘most hated bull market in history’ and asks how much further it has to… 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
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
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
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
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
Guest contributor – Jean-Paul Jaegers, CFA, CQF (Senior Investment Strategist, Prudential Portfolio Management Group)
… however, what is often less debated is the impact that time can have on these variables.
This is relevant as investors’ holding periods have generally shortened and as a result the variables that influence the… Read the article
Most investors are aware that the post-referendum UK equity market rally has not treated all stocks or sectors equally. Since 23 June, for example, the mining sector is up (+38.6%) to date, while retail stocks are down (-8.4%).
In the small-cap space, much of the recent focus post-Brexit has been… Read the article
Many investors are rightfully sceptical of executive share-based compensation, particularly in the US. But the debate is typically around the adjustments made to companies’ declared earnings or the very large payments that can result, rather than a view of the absolute level of dilution and how this should change over… Read the article
As investors scour the globe for yield, one consequence of the low return environment is that companies making the highest payouts to shareholders are being rewarded by the market with higher valuations. This is the opposite of previous equity bull markets where it was companies investing for growth that reaped… 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