Economies & markets
Our Chief Investment Office and experts share insights into our house view and macro trends.
When Donald Trump was elected in November 2016, markets soon applauded him as a tax-cutting, regulation-slashing, business-focused President. The welcome mat was withdrawn during 2018, however, as trade wars started to unnerve investors and stall business spending.
Forecasting returns and markets in 2019 is fraught with danger, as unpredictable political events may continue to cause volatility. However, in staying focused on the economic fundamentals, we see more upside than downside next year.
Whilst Brexit negotiations will continue to be complex and drawn out, we believe there are two key factors for investors to consider in this environment.
First, the impact of the changing value of sterling; and second, the impact of Brexit on UK businesses.
When it comes to science and technology, our investment has never been just about the FAANGs (Facebook, Apple, Amazon, Netflix and Google). We want to capture the potential growth in areas like eSports (online competition gaming), artificial intelligence, robotic automation, and voice activation.
Some investors shun convertible bonds, finding them hard to pigeonhole, and mistrusting their 'geeky' reputation. Basically, though, they are misunderstood and deserve a place in your portfolios if you're thinking about investing in 2019, particularly at this time of rising interest rates.
In the 1980s, Latin America suffered from hyper-inflation, dictatorships and state-ownership of assets. Today there are long-term tailwinds that suggest the region could outpace its developed market rivals in the years ahead. This makes it an attractive prospect for investing in 2019.
All blog categories
IMPORTANT: Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.