Global economies & markets
Our Chief Investment Office and experts share insights into our house view and macro trends.
Having said earlier in the year that 'it should be remembered there are still some significant obstacles to overcome', we are not wholly surprised that the US-China trade war has escalated again, sparking investor nervousness. There are many unverifiable issues surrounding the trade war. There are, however, certain things we can surmise to help investors navigate the current uncertainty.
We ended 2018 in a funk. Investors were beginning to panic that the global economy was entering a period of sharp downturn, the US yield curve was close to inverting, the Chinese economy seemed to be in trouble, Europe was back in the doldrums and President Trump had engaged in a trade war with China and, at the same time, shut down a big chunk of the US government.
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.
After the global financial crisis and the introduction of quantitative easing, it became harder and harder to justify holding fixed interest securities in client portfolios, due to their lack of yield. Yet, across the Atlantic, the tide may now be turning.
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.