Synchronicity has made a comeback this year, 34 years after topping the pop charts. Investors are touting a somewhat flimsy theory about global growth and equity returns, but we’ll be watching more convincing charts in 2018.
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.
A breach of 3% in UK inflation has triggered a letter of explanation from Bank of England (BoE) Governor Mark Carney to Chancellor Phillip Hammond, and lots of media attention. Consumers will be understandably concerned, especially with wage growth lagging, but we believe inflation will peak soon, and remain well anchored longer term (see our latest investment report).
Global warming means spring is arriving sooner. As winter draws in that may sound attractive, but it means plants are flowering earlier than usual. If they become out of sync with nature’s pollinators, the consequences for the global economy could be serious.
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.
It is well known that Britain led the Industrial Revolution. Less appreciated is the fact that it was also at the vanguard of what has been called the “de-industrial revolution”.
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.
An executive summary of the full inflation report for anyone who would like a brief overview of the key points.