As UK and global markets face the unprecedented challenge of the coronavirus pandemic, Louise Kernohan, co‑manager of Dunedin Income Growth Investment Trust, advocates a focus on high-quality companies and the need for a long-term mind-set.…
Equity Market Thoughts
The flavour of our equity market comments in the last couple of months have been focused on the US which we believe to be in the third bubble of the last 20 years. We have…
The Benefits of Compounding Growth For Professional Investors Only
The power of compounding is a well-established concept, however its potential is often underestimated. The ability of an asset to generate consistent growing earnings by reinvesting operating cash flows is a fairly easy logic to…
Summertime, and the living is NOT easy
HISTORY SUGGESTS THAT WE SHOULD BE IN CASH UNTIL THE AUTUMN. WE CONSIDER IF THAT IS THE WISE IN 2017. The investment world seems to be a big fan of pithy bon mots. One is…
The best stockpickers in the universe
Background Last year was a shocker for active managers. Nine out of ten of them failed to beat their benchmarks according to the annual S&P Dow Jones review of active management. Fund managers are an…
UK equities update by Nigel Thomas For Professional Investors Only
“Although larger cyclical companies are enjoying their day in the sun, we believe that it is the growth companies with growing dividends that will increase their shareholder returns over the long term.” One of my…
Signs of Stress are Building, Hinting at Trouble in the Second Half of 2017
6th May 2017 Due to last minute weekend travel plans, this week’s note is shorter than usual with fewer charts. This is somewhat unfortunate, as there are a number of little developments that when added…
2016: The year active management failed?
The active versus passive debate has raged on for more than a decade now as costs of trackers continue to fall. While much of the debate is merely a matter of opinion, the increased focus…
Why the old adage to sell in May is flawed
By Justin Urquhart Stewart, Co-founder. 25 April 2017. “Events, dear boy, events” was Prime Minister Harold Macmillan’s infamous reply when asked what the most difficult thing about his job was. In other words, stuff happens…
Chart-catching – Hire or Lower?
THE PRICE OF US USED CARS, THE HEALTH OF THEIR MAKERS AND CONFIDENCE OF THEIR DRIVERS. Having been flat for several years, US used car values are now falling. The move is significant enough to…
Markets don’t die of old age
Alex Scott, Deputy Chief Investment Officer. 12 April 2017. Investors seem to be a little less convinced about reflation trades now than they did at the turn of the year. Back then the rise in…
Caught Between Growth and Capital Risk
Alex Scott, Deputy Chief Investment Officer. 29 March 2017. Markets continue to be caught between the economic backdrop and political events although now, for the first time in years, we appear to have a synchronised…
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…
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…
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,…
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…
The Trump trade may be close to an end – A round up of Markets
We wish everyone a happy New Year, and with the FX and rates markets entering the year with a bit of a bang, there is a lot to get through this week. We will try…
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…
Week in review: Spending pledge boosts growth forecasts
It was a week where the world eagerly awaited further details of the incoming Trump administration. A slew of appointments from the world of high finance - including Goldman Sachs veteran Steven Mnuchin as treasury…