What’s behind value’s recent renaissance? City Talk The debate over the value and growth investment styles has been intense in the opening weeks of this year. Value’s relative outperformance has been eye-catching, with the MSCI World Value index returning -1.3% in January compared to -9.3% for MSCI World Growth. In some ways though, this is just a continuation of last year’s oscillations [...]
What does value investing have in common with Forrest Gump? City Talk Gump is rewarded for his determination and resilience in the face of vicious storms in the 1994 film “Forrest Gump”. We believe returns could be bountiful for the genuinely long-term and patient value investor too. When I look at a chart like this, I think one of two things. Either it’s different this time for [...]
Six tips for better behavioural investing City Talk At a turbulent time for global markets, Nick Kirrage, Co-Head of the Value Team, recently sat down with the Investor Download podcast. We discussed the current state of financial markets, reflected on the behaviour of investors and how they might best navigate the current turmoil. Below are six key points. Listen to the Investor Download. [...]
The chart that reveals the secret of value investing August 27, 2019 Value investing is the art of buying stocks which are valued at less than their true worth and are awaiting a correction. History suggests that over the longer term value investing works, although past performance is no guarantee of future returns. But why does it work? Using data going back to the late 1800s, the [...]
What do “lower for longer” interest rates mean for value investors? August 19, 2019 “Lower for longer” has been one of the rallying cries of this bull market cycle. Indeed, interest rates are not simply staying low; they have recently been cut again by the US Federal Reserve. Why do low rates matter? If interest rates remain low, economic growth is stimulated, defaults are scarce, financing is easy and [...]
Reading week picks: Will these two books make me a better investor? October 18, 2018 For one whole week this summer, the value investment team I lead at Schroders held its inaugural Reading Week – all heading to our respective homes to read books. To be very clear, great care was taken to ensure no portfolios were left unattended and we could always be contacted. Nor, just in case you [...]
An old bull market ‘red flag’ is back February 28, 2018 The recent turbulent nature of world markets has inevitably led to speculation as to whether this could be the ‘beginning of the end’ of the good run share and bond investors have largely enjoyed in the decade or so since the global financial crisis. Many commentators have, however, argued this bull market has further to [...]
How I scored in an investment IQ test – and what I learnt January 8, 2018 What type of investor are you – optimistic, impulsive? Do you follow the herd? We all have a range of “biases” – of which we are often unaware – and which can affect the way we invest. I’m intrigued by this branch of science, known as behavioural finance. As a fund manager specialising in value [...]
The investment decision that haunts us most October 31, 2017 With the clocks going back this Sunday we got to talking about the one hour from our lives we would want to have over again if we could. From there, it was but a short jump to the single investment decision we wish we could take back or, given Halloween is just around the corner, [...]
Low rates, record high stocks: is the bubble about to burst? October 26, 2017 The world is, seemingly, in a bull market in everything. Just take a few headlines from this month alone: US stocks, already at all-time highs, hit a sixth consecutive closing high, which is the first time that has happened for 20 years. In debt markets, Ireland issued a bond with a negative yield, which means [...]
