Our Chief Investment Office and experts share insights into our house view and macro trends.
This week Tony Dwyer, Chief US Market Strategist at Canaccord Genuity and ‘Wall Street’s biggest bull’, came over from his office in New York and presented to our clients.
One of the fascinating aspects of the current financial markets is that investors can find a plethora of information to support either a positive or negative view of the world, depending on their disposition.
With large companies wising up to the importance of adopting and promoting sustainable business practices – and with the influence, affluence and expectations of Millennials set to peak over the next decade – our guest contributor Will Oulton, Global Head, Responsible Investment, First State Investments, considers the impact on the investment industry, and the increasing need to balance social and environmental responsibility with positive financial performance.
At the start of this year we predicted 2018 to be bumpier than 2017, (which could scarcely have been smoother, with volatility measures at all-time lows during the year), and so it is proving. However, we also thought that the investment climate would still be favourable for risk assets like shares (or equities/stocks). We based this view on robust economic growth across the globe, a boost to earnings from US tax reform, rising corporate profits and the continuing gift from central banks of decent liquidity, even with quantitative tightening from the Federal Reserve, and very low, albeit slightly rising interest rates.
There has been a significant growth and interest in investing on a responsible basis and the area is continually evolving. However, for investors, traditional ‘ethical’ investment solutions have tended to leave a limited choice of companies to invest in, compromising diversification and therefore investment risk/returns. ESG (environmental, social and governance) investing allows investors to take a proactive approach to investing responsibly but not at the expense of their risk/returns.
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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.