Emerging markets (EMs) threw a ‘taper tantrum’ in 2013 when the US Federal Reserve (Fed) mentioned the idea of gradually reducing its quantitative easing programme. Bond yields increased dramatically and equities suffered as global investors lost their appetite for risk and began to withdraw their money.
Political uncertainty has dominated global events over the past couple of years. Surprise voting patterns have delivered Brexit and President Trump followed by an indecisive UK general election result. A minority government is now negotiating the terms of the divorce from the European Union (EU).
Infrastructure investments have attracted lots of attention from yield-hungry investors in the new world of ultra-low interest rates. But this growing demand, chasing after a limited supply of projects, has made attractive infrastructure investments harder to find.
European equities have been in fashion this year, but their popularity may be waning as valuations become less attractive and signs emerge that economic growth may have peaked.
Gold has been used as a form of currency and store of value since long before paper currency was invented and adopted across the world. Today this precious metal divides opinion among investors like few other asset classes. At Rathbones, we prefer to simply examine the evidence and assess its properties.
A small giveaway budget offset by a grave deterioration in the outlook for UK growth and the government’s tax receipts shouldn’t move the dial for investors.
Investors today are paying a relatively high price for the domestically focused FTSE 250 compared with its larger multinational peers in the FTSE 100. This may seem counter-intuitive given Brexit uncertainty and concerns about the outlook for the domestic economy. But the answer to this conundrum may not be as simple as merely buying the cheaper of the two indices.
Investors today are paying a relatively high price for domestically focused UK companies compared with their multinational peers, which seems counter-intuitive given Brexit uncertainty. For investors, this divergence is creating both opportunities and challenges, which are the focus of our lead article “Digging below the surface of UK indices".