Return to Cyclical Normality?

Screen Shot 2018-10-09 at 11.17.07Momentum Global Investment Management, one of our UK regulated discretionary investment managers, held their 17th annual investment conference in London last month.

The theme of this year’s conference was ‘Return to Cyclical Normality?’ Ten years on from the global financial crisis, the era of ultra-loose monetary policy is ending and central banks, led by the Fed, are in the process of gradually normalising policy. Is the World now returning to a more normal cyclical pattern, marking the beginning of the end of the extraordinary economic and market conditions of the past decade?

Glyn Owen, Investment Director of Momentum Global Investment Management, with over forty years of market experience, examines this critical question and its implications for investors, as well as the minefield of geopolitics and the rapidly evolving international order. Click here to learn more.

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FAANGtastic Returns

FAANG-StocksThe high performing FAANG stocks – Facebook, Apple, Amazon, Netflix and Google – have led the market higher over the past 12 months. Their high valuations – Amazon is currently trading at a price-to-earnings ratio (PE) of 195 – and high-tech bent has resulted in inevitable comparisons with the Dotcom bubble at the turn of the century. We do not believe we are in for a repeat of this particular boom and bust cycle, and while we are cautious on the broader US market, we are happy for our managers to continue taking appropriate risks where they see opportunities.

Richard Stutley (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares their view. Click here to learn more.

Macro Matters

When we raise the issue of the importance of macro, we sometimes get the response: ‘no one has a good record predicting macroeconomic variables like GDP growth’; ‘where do you start when it comes to the many interrelated factors that influence inflation?’; or more bluntly ‘why bother?’.

Jernej Bukovec (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares their view. Click here to learn more.

Tech Still all the Rage While Bears Prowl Emerging Markets: BAML Survey

imageGlobal investors remain overwhelmingly bullish on US and Chinese tech shares, while short positions on emerging equities are growing increasingly popular, Bank of America Merrill Lynch’s latest monthly institutional investor survey showed on Tuesday. Learn more

Dodgeball

There are a number of different ways that investors can lose money. Some are risks that are inherent in investing such as having to convert a paper loss into an actual loss because you have to liquidate a holding which is underwater which would likely recover if given time. There are many other ways to lose client money which are permanent. These are often a result of careless strategy selection rather than market characteristics.

James Klempster (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares their view. Click here to learn more.

Taking the Temperature of the Global Economy

Currently the difference between two and ten-year US Treasury bond yields is at its lowest level since 2007, raising fears of an imminent recession. Our base case scenario remains one in which we continue to see a slow, synchronised global expansion. As such we see better value at the front end of the US yield curve and some evidence of mispricing further out, rather than a canary in the coal mine. Nonetheless it is worth spending a minute taking the temperature of the global economy.

Richard Stutley (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares their view. Click here to learn more.