Excluding cohorts of stocks from an investment universe often sparks debate about how this impacts overall fund performance because, if you remove the best performers you can’t benefit from the strong returns that they generate. Whilst this observation is true at a high level, the reality is that certain stocks
Since the Global Financial Crisis, value has suffered one of its longest drawdowns against other style factors, most notably growth. Calls for the death of value have been growing. So, let’s explore the arguments against value, seeking answers to why it has underperformed and whether these outcries have been premature.
Over the past several weeks, the tone of global equity markets has changed, with several breaking uptrends from last autumn. Many attribute this to a combination of restrictive policies of the Federal Reserve in the face of weakening jobs data, along with the technical unwind of the Japanese carry trade,
On the surface, markets appear to have been uneventful in July, with few sizeable moves over the month - the S&P 500 index was up 1.2%, MSCI World index of developed markets +1.8%, emerging markets +0.3%, and US Treasuries +2.1%. The most notable moves were in currencies, with the yen
The Chinese consumer, once a major driving force behind global luxury sales, is currently showing signs of weakness. This slowdown is influencing the broader economic landscape and the decline in consumer spending is having a huge impact on the luxury sector. Despite the current challenges, the long-term growth potential for
Interest rates profoundly affect world economies and our personal finances. Monthly mortgage payments, for many their largest single financial commitment, are dependent on either short-term interest rates, set by central banks, or government bond yields (or in bond jargon ‘swap’ rates, which are closely linked to government bond yields). Download
In the world of fund selection, picking funds is a blend of science and art. Every investor prioritises their research differently, but the most common framework involves the 4 P’s: philosophy, process, people, and performance. Unlike the marketing mix of product, price, place, and promotion, this framework helps in assessing
Falling property prices and rising construction costs isn’t a dynamic that can continue indefinitely. The squeeze on developers’ margins makes construction less and less profitable. When prices eventually fall below replacement cost (marginal price < marginal cost), there is clearly no incentive for developers to increase supply. Download PDF
On Saturday an unassuming 20-year-old opened fire at a Trump rally, the picture of Donald Trump with his fist pumped, blood on his face, surrounded by the Secret Service, will become an historic image. Trump literally dodged a bullet – ‘God alone’ saved him – and the looming US election