Like the UK, Latin America has suffered greatly during the pandemic – perhaps even more so. The World Bank estimates that regional GDP may slip by as much as 8%, with more than four million…
Week in review: the return of inflation
Inflation is back. Figures released this week on both sides of the Atlantic painted a picture of rising prices – and the possibility of an end to the days of ultra-low price increases. The UK’s…
The Struggle Between Equity and Bond Investors
As we sit here trying to navigate the markets and the news flow, we are seeing a number of inconsistencies crop up. With US equities continuing their march upwards, it would appear that these guys…
Commodity Price Bounce
Ben Kumar, Investment Manager. 17 February 2017. Over the last 12 months, commodities have been surging in value, with the Bloomberg Commodity Index rising 14% in US Dollar terms. On the back of this, we’ve…
AIC investor confidence research: Between a rock and a hard place
Brexit and Trump presidency top investor concerns, but low interest rates continue to drive investors to stock market. Quarter of investors increasing stock market exposure - same as last year Two fifths of investors not…
Analysis: What next for European ITs?
Our analysis shows that European investment trusts have in recent years delivered strong returns to investors from their current discount, but risks abound in 2017... Background In September last year we examined European investment trusts…
A tale of two Asias
By Cherry Reynard. There are two Asias: One buoyed by economic development, consumer spending and technological innovation; the other vulnerable to increasing US protectionism and a strong dollar While our focus is on companies rather…
The Maths of Economics – Trump’s Trade Policies Could be a Disaster
Since Brexit, there has been a growing debate about the usefulness of current economic thinking. The basic story seems to be that the economics community broadly failed to forecast the 2008 financial crisis and the subsequent…
Week in review: Home comforts
Global equity markets continued to rally, with the FTSE 100 up 0.57% and the S&P 500 up 0.46% by Thursday’s close. Familiar themes – the ‘Trump trade’, Brexit and the Eurozone’s problems – rumbled on…
What a Difference a Year Makes
Alex Scott, Deputy Chief Investment Officer. 10 February 2017. What a difference a year makes! A year ago, investors were in panic mode, still battered by the shock of the Chinese devaluation in August and…
Value: The beginning of a New Era?
2016 is obviously going to be remembered as a year of great change from a political point of view, but it also could go down as the end of the great bond bull market, which…
A Big Year for Macri’s Argentina
Macri’s early months as president were well received by investors, who applauded his strident attempts to reform Argentina’s sclerotic economy, and voters who wanted a change. However, one year on and the economy is struggling,…
Brexit: AIC recommends layered approach to funds regulation
The AIC is urging the Government to secure consumer, competitive and regulatory benefits following the UK’s withdrawal from the EU by taking a layered approach to funds regulation. Tailoring funds regulation approach following Brexit: Consumer,…
Searching for the Next Decent Trade
It seems like each week so far in 2017 we have been looking at different variations of the Trump reflation trade, and questioning whether the evidence backs a continuation, or a reversal. Frustratingly, it’s been…
Week in review: Fed up with fame
Long ago in the days of yore (well, pre-2016), investors looked to the sages of the central banking world to provide wisdom and guidance. Stock markets could plunge on the inscrutable utterances of Ben Bernanke,…
Reflective Calm or Sleepwalking in a Minefield?
For years, markets have been becalmed by the soothing remedies handed out by central banks at the first sign of trouble. And for years, many (ourselves included) have warned that there must be unintended consequences…
Week in review: the Trump bump
No, not the latest dance craze to clog up the internet, but rather the term some are employing to describe the effects of his election as US president on equity markets. While the trend seemed…
Back on the Radar
Colombia and Ecuador are attracting international mining investors, with each country showing that they can permit modern large-scale mining projects and create attractive investment conditions, writes Paul Harris in Medellin, Colombia… Colombia Despite the immense…
A Pause for Breath – But Inflation is Still Coming
Alex Scott, Deputy Chief Investment Officer. 24 January 2017. Investors have been sensing hints of inflation since the summer. With Trump’s election win in November, those hints became much less subtle. The US economy, already…