Short-Termism

unnamed-2.jpg“Concentration on short-term projects or objectives for immediate profit at the expense of long-term security.”

Jernej Bukovec (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers highlights why short-termism is unhealthy for investors, changing portfolio positioning every time an investment underperforms and chasing outperforming investments. Click here to learn more.

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Getting What You Want

Outdoor relaxInvesting is first and foremost about net returns. Our key value-add is being able to design better portfolios than a formulaic split between bonds and equities based on a client’s risk profile.

Richard Stutley (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers, brings some of this work to light. Click here to learn more.

Understanding the Recent Market Sell-off

Not widely welcomed, but arguably overdue?

The sharp sell-off in stocks that started last week and gathered steam this week lacked a specific trigger — unlike the last time US shares fell this much, which came in the wake of the US losing its AAA sovereign rating at S&P Global Ratings in 2011.

As with plane crashes, the experts are pointing to a confluence of factors, from concerns over the path of Federal Reserve interest-rate increases to a rapid unwinding of trades predicated on continued low volatility in markets.

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Market Update

News this past week:

  • Oil prices climb around 5% last week
  • Volatility makes a comeback moving to 10.9 on the VIX index
  • Global equities trading near record highs
  • Technology stocks under pressure with continued sell offs
  • Central banks adopt a hawkish tone around fiscal tightening

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Weekly Market Update

News this past week:

  • Markets climb on ‘Santa Claus rally’
  • ECB extends quantitative easing programme
  • Volatile week for Italian banks following referendum
  • Encouraging trade data out of China
  • Oil surges after more countries agree to cut production

James Klempster (CFA) of Momentum Global Investment Management shares his view:

As this is my final blog of 2016 I felt it an apt time to look back on the year and to look forward to some key issues for 2017.  My colleague, Glyn Owen, will be writing a far more detailed review and outlook which will be published in the coming days .  2016 was a year of mixed fortunes for investors, a very weak start set precedence for what looks likely to be a decent year for equity markets. 2016 will be best remembered for its twin political surprises of Brexit and Trump, or Brump, if you will. Whilst both being seismic-scale political events, the fact that their respective domestic markets brushed them off underscores the fact that a macro or political story is not the same as an investment case.  To put it another way – even if you had called both elections correctly, would you have positioned your portfolio to benefit from an equity rally in either case?  Probably not.

To read the full update please click here

Weekly Market Update

News this past week:

  • US indices record new highs
  • Fillon wins French centre-right primary
  • UK Q3 GDP growth at +0.5% amid sombre OBR forecasts
  • Euro area PMIs show encouraging signs of growth
  • Trump reiterates intent to leave TPP

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PortfolioMetrix Market Update

Screen Shot 2016-06-21 at 13.39.15

September was again dominated by will-they/won’t they speculation around the US Federal Reserve raising rates at their meeting during the month, although fears over Deutsche Bank’s viability and an OPEC agreed production cut were also significant events.

Meanwhile, PortfolioMetrix’s model portfolios’ relative performance was again strong over the month, with the 10 balanced funds they regularly track up on average 0.3% over the month with the highest performing up 1.0% and the weakest down 0.5%.

Overall, Core Active 6 outperformed 9 of these 10 competitors.

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