US protectionism, Trump-style diplomacy, North Korea, Iran, Syria, Russia, China, Brexit, Facebook, Cambridge Analytica. These have all been headline makers for 2018 so far, and some have undoubtedly been implicated in increased market volatility.
Around the world the political and economic power of nation states has always ebbed and flowed. Alliances are made and undone. And the fortunes of individual corporations rise and fall. But the question for investors today is, are we just looking at a variation on a theme of business as usual for the world’s established economic power base? Or is something else going on? Are we on the cusp of some more fundamental change in the world economic order?
Looking beyond the noise – Sam Morse, Portfolio Manager for Fidelity European Values
PLC, explains why he continues to look beyond the economic
and political noise, concentrating instead on the real-life
progress of listed businesses in Europe, and their capacity
for consistent dividend growth.
Why aren’t we Facebook friends? – The so-called FANG companies (Facebook, Amazon, Netflix
and Google) have been favoured by many investors in recent years. But Alasdair McKinnon of The Scottish Investment Trust takes the contrarian view. He reviews why these tech
behemoths may now be under threat.
In search of safety? – Earlier this year many investors flocked to ‘safety’ as the
prospect of a US vs China trade war and tensions over Syria triggered a wave of unrest. Alliance Trust Savings’ Sara Wilson takes a closer look and reviews some of the routes traditionally used for managing downside risk.
Finding opportunities in the chapters of Brexit – Mark Barnett, Head of UK Equities at Invesco Perpetual, is not discouraged by the Brexit gloom and doom narrative apparently undermining confidence in the UK economy. He highlights three sub-plots that he believes, by driving and distorting UK markets, are creating opportunities for investors.
Still finding winners in the UK – Simon Gergel, Portfolio Manager at The Merchants Trust PLC explains why he sees the corporate appetite for UK PLC undiminished by Brexit and other political shocks, backing
the Trust’s own view that the UK stock market is, in fact, one
of the cheapest in the developed world right now.
Quality control: a re-evaluation of risk – As monetary policy becomes less benign to markets, Bruce
Stout, Senior Investment Manager at Murray Income Trust PLC explains why it is so important for investors to ensure that companies are genuinely delivering high and sustainable earnings rather than trading on past success.
- Appetite for disruption – With much of the developed world looking forward to longer
life expectancy, Tony DeSpirito, Portfolio Manager for the BlackRock North American Income Trust plc explains why he believes that companies embracing disruptive technologies
could be a valuable source of future income.
- Growth from different perspectives – When assessing the growth potential of a company in a globalised world, the managers of Monks Investment Trust
believe it is ridiculous to focus on headquarter location, or
to assume it shares similar characteristics with others in the
same sector. James Budden of Baillie Gifford elaborates.
- The search for future winners ahead of the crowd – Lucy Macdonald, Portfolio Manager for The Brunner Investment Trust PLC considers the longevity of Investment Trusts, how successfully many have navigated the market conditions history has presented them and the potential benefits to investors of
a robust, bottom-up approach to stock selection.
- Tips for uncertain times – No one can ever be quite sure what political and economic developments will mean for markets. But there are some
basic tips that can help you make the most of your money whatever the future may bring. Alliance Trust Savings’
James McCafferty explains.
Please remember the value of your
investments and any income from
them can go down as well as up and
you may get back less than the
amount you originally invested.
All investments carry an element of
risk which may differ significantly. If
you are unsure as to the suitability
of any particular investment or
product, you should seek
professional financial advice.