Topic: financial markets
What the Iran War teaches us about investing
Investors have every reason to be nervous, but if you try to time the market, you will likely miss the best returns.
Market volatility: The price for investing
By recognising volatility as the price of long-term growth, investors can reframe short-term disruptions as necessary steps on the journey to compounding wealth.
Marketwatch: Facing risks, markets keep rising
Financial markets are continuing to brush off key risks and ignore the usual negative seasonality. As we approach a pivotal US elections and with geopolitical tensions running high, risk assets are hitting record valuations.
Bubble Watch
The history of financial markets contains some spectacular boom and bust stories.
Marketwatch: Triumph of the optimists
From the perspective of financial markets, the debate is over and the optimists have won.
Marketwatch: Someone is (probably) wrong
The equity market is pricing in economic resilience, but the bond market is not. The only way to reconcile this cross-asset pricing is a rapid fall in core inflation, which is highly unlikely.
The Great Reset
The bull market that began after the 2008 global financial crisis has come to an end and signals a great reset.
What lies ahead after a difficult 2022
Investors can expect further volatility as central banks around the world continue to raise interest rates in their efforts to cap inflation.
Investing in a high-rate environment
Investing in a high-rate environment has been difficult this year, as higher interest rates have hurt both bond and stock valuations.
Lessons from the UK
Following the adverse market reaction to the now former Chancellor Kwasi Kwarteng’s mini-budget, the UK has found itself in the spotlight.
Revisiting the 60/40 portfolio
The traditional 60/40 portfolio, where 60% is invested in stocks and 40% in bonds, is often considered the asset allocation bedrock for investors who can take a bit of volatility but still want to protect principal and grow capital over time.
The journey from peak inflation
The path back to 2% inflation is a difficult one for policymakers.
Recession: To be or not to be?
This is one of those strange times when markets appear to be sending conflicting signals.
From one policy mistake to another
Most central banks have committed to fighting inflation, but concerns are rising that these efforts will tip the global economy into a recession.
Investment managers drop equities, hold cash
Large investors have slashed their allocations to equities to the lowest level since the 2008 financial crisis and hold more cash than in the last two decades.
Time to be fearful or greedy?
As more investors enter a “sell the rally,” rather than “buy the dip” mood; the second half of the year may provide more volatility and therefore more opportunity.
The end of easy money
Investors around the world should brace for a disruptive tightening in financial conditions.
The case for optimism
Peter Goodall
The market has had a tough start to the year but there is cause for hope. As of this writing, the S&P 500...
How investors can protect against inflation
A common topic among investors is how to protect asset values and incomes while inflation is rising.
The war’s effect on the global economy and markets
Fortunately for investors, the Russian economy only makes up 1.7% of global GDP and therefore global growth may be dented only modestly.
Preparing for the Great Normalisation
While sudden policy reversal of central banks may seem dramatic, these tactics are simply aimed at normalising the economic environment following the extreme policies of the recent past.
Transitioning away from ‘transitory’ inflation
While the pressure on prices is evident in most developed economies, the threat of a new, more serious, variant of the virus may cause central banks to postpone plans to raise interest rates until a clearer picture emerges.
What’s next for the markets after a tumultuous 2021?
Central bank policies will continue to have great influence on what happens next in the capital markets.
More challenging investment conditions in 2022
Broad-based financial market growth will become more challenging heading into the next year, but specific investment opportunities do exist, according to investment professionals at the virtual Cayman Captive Forum.
Market markers for the months ahead
Investors should be watching a few critical markers which could have both short and longer-term impacts on investment portfolios.
Taper testing 2.0
While QE and other aggressive central bank policies were deemed necessary in 2020 to contain last year’s covid fallout, the economy has since picked up steam and a reversal of those policies is now warranted.
Banking on a rebound
Rebounding sharply after last year’s wipe out, the MSCI World Financial sector index has advanced by 27.1% year-to-date, exceeding the broader market by over ten percent.
Growth, value or quality?
A good understanding of the business cycle is of paramount importance to investors as this usually helps to inform what strategies to pursue, traditionally choosing between growth (defensive) and value (cyclical) stocks.
Growth versus capital preservation
Faced with a challenging environment, traditional (non-speculative) long-only investors have to manoeuvre around uncertainty as they grapple with a disconnect between market prices and the economy.
