Week in review: shock absorbers

After Brexit and Trump, investors have grown used to shocks – especially of the political variety. And in any case, it was widely accepted that Italian voters might use Sunday’s referendum to reject the constitutional…

Risk

“ Life is not an illogicality; yet it is a trap for logicians. It looks just a little more mathematical and regular than it is; its exactitude is obvious, but its inexactitude is hidden; its…

Big Picture Thoughts on Equities

With equity investors jumping on the Trump bandwagon, pushing the S&P 500 up by 3.5% since just prior to the election, we thought we would share some of our long term, bigger picture thoughts on…

Fortune favours the brave

It is well known that technology funds offer the potential for punchy returns, but they are also regarded as very volatile investments - a characteristic that we were reminded of last week when 'The Donald'…

US Reflation: Trump Style

Last week in “Peering past the election”, we outlined a potential reflationary period ahead that could either be elegant or disorderly. Clearly the market views Trump as more reflationary than Clinton would have been, judging…

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…

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…

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…

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…