ANALYSIS: Value vs growth not a black and white issue
Ignore the politics. If there’s one takeaway for investors from 2016, it’s the move from growth to value.
ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.
Ignore the politics. If there’s one takeaway for investors from 2016, it’s the move from growth to value.
If a week is a long time in politics, then in markets it can make or break a trader, while heightening the contrarian instincts of investors with a longer-term view.
Ever get the feeling you’ve been cheated? As I write, the masses are rebelling against a momentous decision that has thrown the free world off its axis… and that’s just the changing shape of the Toblerone.
In Orwell’s dystopian masterpiece 1984, Room 101 represents the “worst thing in the world”. 101 days on from the EU referendum, it’s up to Theresa May to convince the dissenters that Brexit is not a portal to their worst nightmares.
It’s the big divorce that is the talk of today’s headlines – yes, investors have fallen out of love with hedge funds.
With central banks loosening their belts so much comes the risk of policy makers getting caught with their trousers down.
Sanofi and Henkel have faced a fair amount of derision from commentators this week having both issued negative yielding corporate bonds, but could this be a sign or major troubles to come in fixed income markets?
Conventional wisdom suggests an oil glut is keeping the price of the Brent Crude down, but who’s to say that the recovery story will not continue?
Talk of a 0% fee for passive investing is an enticing prospect, but as core funds become cheaper so groups are encouraged to over-complicate the satellite.
While investors reach for their hard hats ahead of the EU referendum, they should also prepare for potential bargains – whichever way the vote goes – on 24 June.
The hyperbole is in full swing, with even The Queen backing Brexit according to The Sun. A more erudite view perhaps comes from Rathbones’ five common ‘myths’ around a potential exit from the EU.
Those who believe that ‘risk-on, risk-off’ is consigned to the past look away now, with record inflows into US high-yield indicating that sentiment has shifted once again to the spicier end of the fixed income spectrum.