Roller Coasters & Defensive Back Fours

Yesterday the FTSE 100 fell to its lowest level since August 2012. The sharp global stock market falls in the last six months have been attributed to fears of slowing economic growth in China. However China has had a side-kick to gang up on stock markets – the falling oil price.  A clear linkage exists between the two. Both are …

Fragile China, Fragile Global Economy

Given the turbulence on global stockmarkets this week I thought it would be appropriate to write with my comments. It is often said when the US sneezes the world catches a cold. This mantle has clearly passed to China or at least it is now shared by her. In one sense the sharp sell-off in China at the start of …

After the Storm

A kind of calm has returned to global stockmarkets after the August sell-off, triggered by fears about the Chinese economy and its impact on global growth. In the last few weeks I have had time to selectively digest the many commentaries from fund managers. There is a wide spread view the crash was overdone, no surprise there, but nonetheless there …

Volatility & Interest Rate Sensitivity

A recent feature of global markets has been increased volatility in both equities and bonds. Clearly the Greek debt crisis has weighed on equity markets especially in Europe. Incidentally UK banks have very little exposure to Greek debt although the knock on effect of a default could be significant given the EU is our biggest trading partner and the potential …

The Sage of Henley

The famous and highly successful US investor Warren Buffet is commonly known as the Sage of Omaha. He is noted as a shrewd and long term investor with a strong focus on value. He is also the source of insightful and humorous sayings on investment. It is worth googling and reading his quotes but two of my favourites, I have …

China Debt, A Systemic Risk?

Chinese debt is often cited as a potential systemic threat to the global economy. Other culprits are deflation and Japanisation of Europe (the latter incidentally was dismissed by Rob Burnett, Head of European Equities at Neptune Investment Management in a recent webinar I listened to – but this is another story), tapering of QE and predicted interest rate rises. Although …

Cash to Equities – US, China and Gold

Early this month I decided to move more but not all of my pension fund cash into equities. Historically December is the best month for stockmarket index gains. I am not sure of the precise reasons for this but it may be due to end of year performance fees, fuelling buying by fund managers and institutional investors or the holiday …

Perspectives on China

I like fund managers and economic commentators who are opinionated. They are likely to come up with interesting contrarian thinking and challenge established norms. They stimulate investment ideas and if right the strategies that come out of these ideas are profitable. Recently I came across Michael Godfrey co-manager of M&G’s Asian and Global Emerging Markets funds. I have to admit I have never used M&G for these sectors and …