• Sterling vs USD lowest since 1985, whilst UK equities reach record highs
• US economy adds 156,000 jobs in September
• Dollar rises as expectations converge on December rate hike
• ECB rumours trigger rise in global bond yields
• In commodities, oil rises and gold falls
James Klemspter (CFA) of Momentum Global Investments Management shares his view:
There are a number of different ways that investors look to outperform the stock market. Investment Factors (or styles) are one example of this. Some Factors are well known, widely understood and their investment merit is intuitive whereas knowledge of other styles is today the preserve of investment professionals and their value proposition is more obscure. While there are a vast array of technical definitions of these different Factors, at their heart is a common purpose; namely to generate more efficient returns than the broad market; to generate more return for a given amount of risk. These Factors have historically been the preserve of active managers, but the evolution of smart beta strategies is resulting in a greater number of passive style exposures for investors.