We appreciate that investors and clients are probably more concerned about market direction and peaks in infection rates than asset allocation at the moment, but we have seen a number of pieces about emerging market equities – concerns and opportunities. For this weekly update, we thought we’d dispel or try to dispel a myth and get a greater focus on the ‘EM’ landscape.
Any meaningful events in the first five months of the period to March 2020 were eclipsed by the final five weeks of the half-year when the Covid-19 coronavirus arrived in Northern Italy from Asia on the penultimate weekend of February.
March Madness? During my time working in the United States in a previous life, March was notable among sports fans for the annual National College (NCAA) Basketball Championships also known as ‘March Madness’. Needless to say, it didn’t take place this year and apologies to non-sports fans for this reference but for many investors, March […]
Along with ‘whatever it takes’, two phrases that have had many mentions in the past week. There has been more ‘whatever it takes’ this week from the US Federal Reserve in providing support to markets, liquidity and companies but that was the title of last week’s blog update.
The phrase coined by the European Central Bank President, Mario Draghi in 2011 that effectively saved the Euro has been quoted by more than one country leader and/or their finance minister in the past week.
At times like these, it is hard not to be emotional and that usually involves an urge to sell after risk markets have lurched downwards again after already suffering substantial losses – all in the space of a month.
COVID-19 – T. Bailey Asset Management business contingency details.
My Grandad died at the age of 21! How is that possible?! Well he was born on the 29th of February and as that was a leap year, he only had 21 birthdays in his 84 years. This year is also a leap year and to many investors, investing now is something of a […]
For bond investors, 2019 was a good year despite the rise in yields in the final quarter. For TBAM, this is an asset class that have chosen to avoid in our multi-asset Dynamic Fund. With an objective of UK inflation plus 3% per annum over rolling three year periods, it is not worth investing our […]
As you will have seen untold volumes of media footage and column inches, in addition to any number of invitations to webinars on the election outcome from investment providers, I will only state that the size of the majority gives the PM five years in office but also allows the Conservatives to become more centrist. […]
Balanced or Unbalanced? The old-fashioned balanced fund is still favoured by many investors as a sensible way of investing. Also referred to as a 60/40 portfolio where, depending on your risk appetite, the 60% is either in bonds or equities, the approach has morphed into a multi-asset style of investing encompassing more asset classes and […]
Being Different… “Conformity is the jailer of freedom and the enemy of growth” – John F. Kennedy Readers will no doubt be aware that we vehemently disagree with the industry template the investment herd follows. As a refresher, that view relates to indices, their construction and constituents. Why should an investor care about an index? […]
Whatever it takes – Draghing the Euro down – even lower for longer August’s mid-monthly update was titled ‘Lower for Longer’, referring to the extremely low, often negative yields available on longer-dated maturities in the bond markets of North America, Europe and Japan. On September 12th, the European Central Bank (ECB), as anticipated, lowered its […]
The 2019 Rugby World Cup kicks off on Friday in Japan and we can’t wait! Japanese equities provide us with thematic exposure to areas such as technology, robotics and reform through small and mid-cap companies. The Yen can also act as a buffer against market volatility in risk assets.
Lower for Longer There was a time when ‘lower for longer’ meant that short term interest rates or official monetary policy in the developed economies, would remain low or perhaps go lower. That may still be the case but, except for the US, there is little scope for interest rate cuts from the major Central […]
Is the term ’emerging markets’ merely a flag of convenience? Finding an Asian fund that doesn’t deliver index-like returns is like finding a needle in a haystack.
Overrated II In June’s mid-monthly update ‘Overrated’ – https://tbaileyam.co.uk/news-and-views/ – we commented on the potential over-optimism of developed government bond markets regarding the future path of official interest rates led by the US Federal Funds rate. At the same time, we referenced the start of the 2019 Cricket World Cup in England and Wales and […]
Overrated The Cricket World Cup is currently taking place in England and Wales, and there are a few games taking place at Trent Bridge here in Nottingham. I was fortunate enough to be at the England vs Pakistan match last week. A cracking match but England lost. England almost had their captain suspended for a […]
The title of this piece refers to a misalignment of interest often also described as a principal/agent conflict. The principal is the investor and the agent is the asset manager. The investor wants to preserve and grow their capital in real terms while many agents, especially publically-quoted asset management companies, want to gather assets and […]