How might higher inflation affect your investments? June 1, 2021 The latest figures for US consumer prices showed that the rate of inflation increased the most since September 2008. This is raising fears that we are headed for a sustained bout of inflation. Rapid price increases lower a currency’s purchasing power, reducing the amount of goods and services you can buy with money. This damage [...]
Does an emissions scandal await the real estate sector? May 6, 2021 In September 2015, news broke that Volkswagen (VW) had been selling cars in the US that had a so-called “defeat device” installed in diesel engines. It could detect when they were being tested and change performance to improve results. The German carmaker admitted to cheating emissions tests and it soon became clear that this was [...]
How strong might the UK’s post-Covid economic recovery be? April 30, 2021 It has been a tough start to the year for the UK. As lockdown restrictions continue to slowly ease, we examine the progress made in tackling the Covid-19 pandemic, and whether hopes for a strong economic recovery are well founded. Vaccines offered hope, speedy inoculation will solidify the recovery A year on from the start [...]
What is the post-pandemic outlook for Asian shares? April 28, 2021 Despite the global turmoil caused by the Covid-19 pandemic, stock markets were generally strong in 2020 and the Asia ex Japan region was no exception. Indeed, in many ways the region was first into the pandemic and first out, with successful containment of the virus in many countries enabling economic activity to resume more quickly [...]
Peter Harrison: The City must back Sunak’s vision for the stock market April 26, 2021 The relationship between the stock market and the economy is fundamental to any nation’s wealth. Without the effective channelling of capital to the best businesses, all suffer. For decades, London has been a world-leading financial hub, but now its future is less certain. First, consider an example of its success. Exactly 20 years ago, a [...]
Why the going is about to get tougher for investing in climate change April 23, 2021 2020 was an extraordinary year for climate change action. Public opinion, governments, businesses and financial markets all had major shifts in their appreciation of the urgent need to address the climate crisis. More investment, research and development, and international collaboration will now come together to enable a faster transition to a net zero economy. While [...]
Mind the GAAP! The dangers of “growth at any price” stocks April 19, 2021 Anyone who has ever taken a subway in New York City or frequented the London Underground will be familiar with the warning to “mind the gap” between the carriage and platform. In a similar fashion, investors also need to be fully aware of the dangers posed by the GAAP, or “growth at any price” stocks. [...]
Treasury tremors: how does the current sell-off compare with past episodes? April 16, 2021 US Treasuries have seen the second worst start to a year and third worst quarter in 50 years. It is another eye-catching development amid what have been extreme conditions in markets and the economy over the past year. Bond markets have seen particularly unusual circumstances, with yields falling ever lower and an increasing number of [...]
The pros, cons and incentives behind the SPAC-craze sweeping markets April 14, 2021 There have been 378 initial public offerings (IPOs) in the US in the first three months of 2021. That’s more than in any full calendar year between 2003 and 2019. The $139 billion raised so far this year is more than two and a half times the yearly average over this period. They already have [...]
Johanna Kyrklund: the FOMO market is over – so, what’s next? April 12, 2021 Maybe lockdown has made me more middle aged and boring. I’m just not as interested in trendy stuff any more, both in my personal life (I opted for a VW ID3, not a Tesla, after all) and now in investing. But in today’s markets a more boring approach – favouring diversification and judiciousness over more [...]