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Trends
European growth is not an oxymoron
Talk of austerity rather than growth has made investors turn away from Europe. But there are opportunities for profit, and mid-cap stocks in particular show the right characteristics.
Which country’s word is its bond?
The credit crisis in the developed world has brought new risks into government bond markets. Sovereign borrowers’ ability to meet their debt obligations can no longer be taken for granted.
Absolute Return riles the critics
Although many financial commentators still have doubts, the rapid growth in the number of funds available – up to 74 from 12 in five years – testifies to the sector’s popularity among investors.
Benefits of keeping good company
Low interest rates and monetary policy support British companies with strong balance sheets and enduring appeal, which offer scope for healthy returns, especially over long-term horizons.
Corporate bonds promise rewards
Expectations of robust economic growth are overdone but basic arithmetic shows there is a healthy margin for error before European corporate bonds become a poor investment choice.
Global market’s well-spring of choice
Global demand for various energy sources will rocket over the next 23 years, and as technologies develop and markets mature, investors have a rich choice of plays from which to make gains.
Making a ‘special relationship’ work
America’s symbiotic relationship with China and investment in technology companies make it a good prospect for skilled investors, despite the volatile performance of funds in the sector.
Power play for investors with insight
The financial crisis turned the New Energy sector from market darling to pariah. But pockets of premium growth are appearing as uncertainties over traditional energy sources increase.
Big middle sharpens hunger for risk
Mid caps are at the forefront of the British equity market rally, but performance is unlikely to be as robust as previously and despite an appetite for risk, high-quality stocks are desirable.
Grounds for optimism in Europe
Despite European woes, there are some positive signs; the private sector’s improved balance sheet, clarity on regulation and America’s recovery will all help towards investment growth.
Diverse market, myriad outcomes
The IMA £ Strategic Bond fund sector is large and many faceted, which means performance can vary, especially as inflation and volatility take their toll. So investors should pick funds with care.
Demand up, but not for any old iron
China’s growth fuels demand for iron ore, but technical hitches and regulations constrain supply and increase costs. Investors should seek low-cost producers with growing margins.
A compelling case for investment
Developing countries’ financial strength, burgeoning domestic markets and healthy foreign currency reserves entice investors to take long-term views on emerging market debt.
Seeking clarity in an opaque world
Uncertainty grips financial markets and the fallout from the eurozone crisis will have an impact – whatever the outcome. However, investment grade corporate bonds offer some certainty.
Rule change will open locked doors
Investors fight shy of investment trusts, but performance shows that this closed-ended market is worth considering, especially as the retail distribution review will make it more accessible.
Quality dovetails with good returns
Companies with strong balance sheets and niche services or goods offer the best opportunities for investors because they are likely to generate higher and more consistent returns.
Eighteen years hence is hard to see
Investors in Junior Isas should beware of trying to predict winners as old orders and dominant players can rapidly change. A globally diversified focus, however, will cover most outcomes.
Few stars twinkle in dark universe
Most IMA sectors posted negative results in a year beset by volatility and crisis, with equities suffering from sluggish global growth and a flight to the relative safety of fixed income.
Skewed view of cash raises questions
American companies hoard cash as a safety-net against falling margins. But superficial data gives a false picture of economic health - corporate spending needs to increase to aid recovery.
Without a cure, disease will spread
As the debt crisis in Greece matures, it is possible to assess the impact it is having on the eurozone’s peripheral countries as well as highlighting the need for a long-term solution.
