The case for US inflation protected government bonds
30/06/2020 - Inflation has notably decelerated in response to the COVID-19 induced recession we are currently experiencing. However, over the medium term, we see scope for a revival in consumer prices, a topic we have discussed previously.
Tilting towards Emerging Markets over Developed Markets
16/06/2020 - The term Emerging Market (EM) was coined by author Antoine Van Agtamel in the early 1980s. Technical definitions vary, but generally an EM is understood to be an economy with a low to middle income per capita, which is transitioning from a closed economy to a more open market economy.
UK economy to recover from its darkest hour
16/06/2020 - UK GDP fell by 20.4% in April, not far off economists’ expectations of 18.7% (according to a survey by Bloomberg), and much lower than the drop of 5.8% in March. In terms of level, this decline effectively erased 18 years of economic growth, bringing total GDP back to 2002 levels!
Market growth pains may favour value stocks
08/06/2020 - Value and growth are the two most traditional schools of investing. Value investors seek to find companies that they believe are undervalued. Growth investors seek companies offering capital or earnings growth that they believe will outperform the market.
Cable under tension from upcoming UK-EU talks
01/06/2020 - Amongst financiers, particularly forex traders, the term ‘cable’ denotes the exchange rate between GBP and USD or even just GBP itself. The name is derived from 1800s transatlantic cables used to transmit the GBP/USD exchange rate. Downwards cable equals sterling depreciation and dollar appreciation and upwards, the opposite.
Governments may opt for local over general lockdowns to contain another COVID-19 outbreak
18/05/2020 - Governments are gently beginning to ease lockdowns, allowing economic activity and hope of a V-shaped recovery to continue. But a critical risk, for markets and society, is the risk of a ‘second wave’ of COVID-19 and subsequent government responses.
Is COVID-19 the end of Responsible Investing?
30/04/2020 - Over the past few years Responsible Investing, often known as (Environmental, Social and Governance (ESG), has surged in popularity, with more investors wishing to influence positive change with their money. The wider investment industry came to understand that more responsible companies are likely to still be trading in the long-term. However, for every trend there are critics.
Yield opportunities in US corporate credit
17/04/20 - The US corporate bond market offers an opportunity for income seeking investors. Investment grade and high yield corporate bonds currently trade at yields of 2.1%, and 7.4% respectively, which compares to a S&P 500 equity trailing dividend yield (DY) of 2.2%.
Dividends: Under the knife
07/04/2020 - As the ramifications of the global lockdown response to COVID-19 develop, dividend income is being slashed. We explore what this means for our clients, especially those who need a regular investment income, and consider how long and severe this income drought might be.
Are structured products helping manage risk in distressed markets?
06/04/2020 - In recent weeks nearly every asset class has seen remarkable and unexpected price movements. Structured products are often used in modern investment portfolios to reduce risk and or diversify returns, but prices have been as volatile and disconcerting as many other assets. In this article we answer five questions to explain how products are formed, why these are used and the factors that determine pricing.
Metals & Mining Sector – An Opportunity Ahead?
03/04/2020 - The metals & mining sector has been amongst the worst hit sectors amid the recent market volatility relating to the COVID-19 pandemic. This has always been a high beta sector exposed to global consumption, and it has once again proven thus.
Market volatility and trading strategy
26/03/2020 - At Smith & Williamson we pride ourselves on the efficiency and skills of our dealing team, who processed over £9bn of trades last year, and saved clients millions of pounds by achieving excellent prices. But in recent weeks our team, with over 150 years’ combined experience trading, including during the 1987 crash, 9/11 and the Global Financial Crisis, have seen unprecedented and difficult conditions.
Market update – S&W Monthly Webinar
In this episode of our Investment Outlook webinar, Daniel Casali, our Chief Investment Strategist, discussed ‘Four market risks to monitor’, topics included:
- Global equities rallied in Q2’20 from oversold levels
- The four market risks opposite could potentially derail the rally
- On balance, stimulus and economic recovery should mitigate these risks and lift equities up further
S&W Weekly Webinar - 24 April 2020
S&W Weekly Briefing - 27 March 2020
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