Global 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
As we reach the mid-point for the year, leaving behind a half most would rather forget and looking forward to a half in which central bank quantitive tightening is about to really pick up, Deutsche Bank’s Jim Reid writes that markets spent most of the month of June flip-flopping between constantly evolving trade-war related headlines, as well as digesting the diverging path of a more hawkish than expected Fed versus a more dovish than expected ECB following their respective policy meetings. Learn more
Of the regular 39 assets in our sample, a very impressive 38 finished with a positive total return in USD terms and 36 did so in local currency terms.
The S&P 500 (+21.8%) ended the year with a positive return in every month – the first time this has ever happened in the 90 years of monthly data.
A landslide election victory for Japan Prime Minister Shinzo Abe on Sunday sent the yen down and stocks in Tokyo higher, with the path paved for a continuation of loose monetary policy.
With Abe now in good political shape ahead of a pending decision on nominating the Bank of Japan’s leadership, the Japanese currency slumped to its weakest since July. The nation’s two main benchmarks extended their recent rallies that sent them to the highest in at least a decade. Could Japan’s equity market now be set to outperform emerging markets? Learn more
Generally positive economic news as well as a weakening dollar provided the backdrop for investors in July. For UK investors, this meant strong positive returns from almost all asset classes. Politics and Central Bank messaging continued to influence markets, but in a slightly more subdued manner than had been the case throughout the rest of the year. Learn more
The big news of the month was the election of Donald Trump as 45th president of the United States of America which world equity markets ultimately responded well to when viewed in local currencies. Bonds, however, generally fell in price as whilst Trump’s spending plans are likely to spur short to medium term growth they look likely to radically increase the fiscal deficit and push up inflation. For UK investors, after a tough post EU referendum period, the pound strengthened strongly in November which put pressure on the returns of overseas assets when converted back to sterling. Learn more
After an eventful few months in the UK, August was relatively quiet from a market point of view, with a large portion of Europe on holiday. For those left at their desks, the outlook for US interest rates and to a lesser extent a recovering (and then slightly fading) oil price seemed to drive most activity.
Quiet months are often good ones from a portfolio perspective, and so it proved this month too. The latest performance analytics pdf is available here and August commentary is available below. Learn more