Investment insights: cuts, yields and opportunities
By Kirsten Hastings, 3 May 16
With the looming threat of dividend cuts and a reversal in bond yields, coupled with the emergence of new growth patterns and value opportunities, click through the following pages to read what five wealth managers think we should be paying attention to.
Richard Jeffrey, chief investment officer at Cazenove Capital, says: “The world is no more uncertain than it was, but it is possible to be overwhelmed by the deafening noise of statistics.
“Newspapers love volatility and encourage investors to feel nervous, but the best explanations are usually the simplest.
“Prior to the last recession, unsustainable, credit-fuelled excess demand from advanced economies created rapid growth in manufacturing output in emerging economies, which, in turn, led to increased demand for raw materials and energy. The current disruption is the unwinding of that trend.
“A new pattern of growth has emerged from the last financial crisis and the world has become a lot more competitive. Aggregate growth is lower and the global export environment has seen a significant shift with the west now being a net saver.
“In this environment, commodity prices were only likely to weaken. Nevertheless, there are good signs coming through: intra-eurozone trade is increasing, indicating a gentle recovery within the single currency area, and meanwhile the environment in the US is better, as demonstrated by increasing UK exports there.”
Tags: Canaccord Genuity Wealth Management | Cazenove | Henderson Rowe
