An optimistic start to 2022

Markets have opened with a flourish – dismissing the new variant and inflationary pressures: should investors follow this new-found optimism? The year has started, slightly surprisingly, on an optimistic note. Technology shares sold down as economically-sensitive sectors such as banks and energy led markets higher. Investors have made their views clear – Omicron is mild, … Continue reading “An optimistic start to 2022”

Commercial Property Market Review – December 2021

Strong performance from retail parks Retail parks remain the shining light of the retail industry, with their yields across Europe now at parity with shopping centre yields, according to Savills’ data. So far in 2021, more than €5.1bn has been invested in retail parks across nine European countries. Investment was up 46% year-on-year in the … Continue reading “Commercial Property Market Review – December 2021”

Inflation: not so transitory after all

Inflationary pressures are real and are looking increasingly persistent rather than transitory. Investors need to be wary of the assumption that all equities can weather an inflation storm. Inflation is now over 5% in the UK. This is considerably ahead of the Bank of England’s targets and also ahead of its expectations. To date, stock … Continue reading “Inflation: not so transitory after all”

Inflationary headaches intensify

Global Market Review Omicron variant hits sentiment Global equity markets generally fell over November as investors digested new of the discovery of the new “Omicron” variant of the Covid-19 virus in South Africa, which triggered concerns that the economic recovery might be derailed. Federal Reserve (Fed) Chair Jerome Powell warned that the emergence of the … Continue reading “Inflationary headaches intensify”

Targeting Pricing Power

UK Inflation has jumped to a decade high, hitting 4.2% in October. These prices rises have been widely predicted by, among others, the Bank of England and the Office for Budget Responsibility. This is uncomfortable for consumers, who are facing vastly increased costs on everything from car hire (up 30%) to air fares (up 28%) … Continue reading “Targeting Pricing Power”

Higher inflation for longer

Global Market Review Intensifying inflationary pressures The International Monetary Fund (IMF) warned that the world is facing inflationary pressures that will be “higher and longer than expected”. During October, US Federal Reserve Chair Jerome Powell commented: “We now see higher inflation and the bottlenecks lasting well into next year … I do think it’s time … Continue reading “Higher inflation for longer”

Three reasons why markets may slide

Having looked at the bull case for stock markets,  it is worth examining the bear case. There are structural forces conspiring against equities today, from slowing growth, to high valuations to rising interest rates. We look at why these elements may prove to be the final straw for the lengthy bull run in global share … Continue reading “Three reasons why markets may slide”

Three reasons why stock markets can power onwards

A lengthy bull market is always nerve-wracking. Investors start to fret on valuations, on earnings, on the strength of economic growth. As valuations creep higher, but economic growth remains strong, we look at the bull and bear case for equities today. First, we examine three reasons why investors could be cheerful about the prospects for … Continue reading “Three reasons why stock markets can power onwards”

The beginning of the end

Global Market Review Stimulus withdrawal creeps closer The US Federal Reserve (Fed) may start to reduce its stimulus measures sooner than expected if the US economy continues to make progress towards the central bank’s key goals of full employment and stable inflation. Nevertheless, Fed Chair Jerome Powell – speaking at the annual Jackson Hole Symposium … Continue reading “The beginning of the end”

Five things to watch out for in the rest of 2021

The economic restart is well under way, with buoyant economic data emerging from most major economies. However, the world can only reopen once and we are entering the ‘post-restart’ era, with potentially slower growth. What do investors need to look out for in this new environment? Inflation running hot It’s the obvious choice, but it … Continue reading “Five things to watch out for in the rest of 2021”