magazine archive
magazine archive
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Emerging markets: Views from the experts
Thursday 29 Oct 20201. Brazil Brazil has been among the hardest hit by the Covid-19 pandemic, just behind the United States and India in the number of reported cases. However, we have started to see the number of new cases in Brazil start to decline. Ironically, we believe that the government’s decision against...
How to mitigate emerging market governance risks
Thursday 29 Oct 2020Investing in emerging markets involves encountering a different set of risks than those experienced in developed countries, including when it comes to governance. This reflects both the regulatory framework for capital markets in emerging market countries and the structures of ownership which are...
Investing in family-run businesses can help you beat the market
Thursday 22 Oct 2020Some of the most respected investors including Fundsmith manager Terry Smith and asset manager Stewart Investors hold the view that family-controlled businesses can be good investments. The logic is fairly simple – the people running family-controlled companies will have its interests at heart,...
Beyond Brexit: the outlook for UK stocks and the pound
Thursday 22 Oct 2020While the coronavirus pandemic has been the dominant story of 2020 for global markets, ever-present in the background for UK investors has been the long and torturous road to Brexit, which is rapidly coming to a head with the UK needing to strike a trade deal with the European Union (EU) before 1...
Shuffling the pack: How income funds are turning to different stocks for dividends
Thursday 15 Oct 2020It’s been a tough year for people who rely on their investments for income thanks to widespread dividend cuts. Income fund managers have now rejigged their portfolios to names which they believe will be dependable source of dividends or bond coupons going forward. Their changes make for interesting...
Why investors need to do their homework on rivals and suppliers
Thursday 15 Oct 2020Whenever a fund manager considers making a new investment, as well as thoroughly analysing the target company’s returns, its finances, the valuation of its shares and so on, they typically take a good look at its rivals to understand the dynamics of the market. In a global sector like oil,...
Low growth, recovery or second wave: the investments to own in each scenario
Thursday 08 Oct 2020We see three different scenarios for markets going into 2021 and inflation will play a key role. First is strong economic recovery with rising inflation and this scenario favours cyclical stocks. For example, this might be commodity producers who would sell their metals for higher prices. Banks...
Why do shares sometimes react so differently to positive news updates?
Thursday 08 Oct 2020It’s fair to say that more often than not as human beings we overreact to information, which in turn can lead share prices to overreact in the short term. Yet, as our recent article on momentum showed, if a stock is in a clear trend – positive or negative – it can experience a lot of short-term...
The FTSE 100 firms which have delivered a decade of negative returns
Thursday 01 Oct 2020Thirteen companies in the FTSE 100 have lost money for investors who have held the shares over the past decade, based on share price performance and dividends reinvested for the 10 years to 24 September 2020. In comparison over the same timeframe, the 10-year total return for the index stands at 52...
Momentum investing: when to buy a winning stock
Thursday 01 Oct 2020One of the oldest sayings in the stock market is ‘the trend is your friend’, which means if a share price has been rising for some time, all else being equal, it’s likely to continue rising for the foreseeable future. Likewise, if it’s been falling for some time, it will likely keep falling until...