Speaking at the Federation of European Independent Financial Advisers’ Spring Conference 2015, David Itzkovits, head of investments at Sanlam Global Investment Solutions, said the average investor’s returns fall below the S&P 500 index every year by a significant amount due to their fund manager’s positive and negative emotions.
Disappointment over the slowdown in US first quarter GDP growth should not discourage equity investors, says Harwood Capital’s Richard Philbin, but they should tread a little more carefully.
China’s interest rate cut announced over the weekend is widely expected to be just the latest move in a monetary loosening process that could ultimately end in quantitative easing.
Profits made by FTSE 350 companies have fallen 7.7% on a like for like basis to £1.44tr, according to the Share Centre’s Profit Watch UK report.
The General Election may have dominated the headlines this week, but bond investors should be much more concerned by the bund price plunge, says Miton Asset Management’s David Jane.
Local currency bonds in India, Mexico and Brazil are what BlackRock has bought, and market overreaction when the US Federal Reserve raises interest rates could be the time to buy more emerging market assets, said Rick Rieder, chief investment officer of fixed income fundamental portfolios.
The initial market reactions to the surprisingly strong victory for the Tories in what was touted as the closest election in a generation were positive, Sterling strengthened, markets rose and inboxes flooded with commentary.
The FTSE 100 spiked briefly through 7,000 points on Friday and sterling strengthened as investors woke to news that the Conservative party had beaten even the most optimistic expectations.
Investors have been getting a rather sharp reminder of just how much interest rate risk is present within government bonds.
Holders of short-duration gilts should be hoping a Conservative-led government emerges from the General Election, says Newton Investment Management’s Howard Cunningham.
Policy divergence will reach a breaking point and either drag the US and UK back into quantitative easing or trigger widespread reflation, says Rathbones’ Bryn Jones.
Indian reforms are crucial in order for economic growth rates to be sustainable, says Invesco Perpetual’s Stuart Parks, but investors need to have patience.
