The US and UK inflation reports have just been released. US inflation in August was less elevated than anticipated. Does that mean that US inflation’s recent spike is indeed transitory?
In a month where the Delta variant occupied more column inches than macro-economic data, for financial markets, it felt like a relatively quiet summer month.
The publication of the UN's Sixth Assessment Report on Climate Change was unequivocal - human action causes climate change and it contained stark warnings for the future. Long term it will have large major effects on the investment industry.
While many financial market commentators have championed China as the area of high growth, we frequently remind people when questioned on this subject that China is not a democracy.
‘Football’s Coming Home’ may have grated on some given its repetition but, despite the defeat in the final to Italy, it could be argued that football did come home as a whole new audience was drawn to the game by the influence of the England team.
Towards the end of June, we were delighted to learn that the T. Bailey Dynamic Fund has been selected as one of the top five Mixed Asset funds in the FTAdviser Investment 100 Club.
Financial markets were without much to dampen investors’ spirits. With the exception of the Japanese equity market, developed stock markets had a good, positive month. Other asset classes were relatively stable and exhibited less volatility.
The financial media has become obsessed with Bitcoin, to the extent that focusing on Bitcoin obscures the bigger opportunity afforded by the use of blockchain technology in the years ahead.
Investors could be forgiven for thinking government bond yields on both sides of the Atlantic are off to the races. After a brief but short-lived rally, yields are back to last month-end levels and volatility is up too.
Like January, February was a game of two halves with the mid-point acting as a tipping point for risk assets. ‘Game’ also took on a new meaning amidst the gamification of the stock market.
‘Reflationists’ fear that as restrictions on movement are lifted, a surge of demand will create inflation. This inflation fear, along with increased government bond supply, has caused government bond yields to rise sharply in 2021.
Focus on maintaining easy monetary policy through low interest rates and quantitative easing by the US Federal Reserve and Bank of England has helped asset prices, especially in equity markets.
The final week of January saw financial market headlines dominated by the trading activities of online community traders.
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Our aim is to buy into robust demand themes over the long-term where earnings are more sustainable than in low-margin, capital and labour-intensive businesses.
