In an environment of heightened volatility, which has alarmed relatively inexperienced investors, what themes should they consider to benefit from growth over the medium to longer-term?
The markets are already distorted due to the amount of quantities easing (QE) being pumped into the system and continued uncertainty over the future, making stock valuation complicated.
Markets have rebounded strongly from their lows in March, much of which is driven by policy responses from both governments and central banks. As these interventions are nearing an end, it is likely that markets will need to absorb a significant level of negative news flows over the coming months.
In the past, some may have thought of Environmental, Social and Governance (ESG) funds and Socially Responsible Investing (SRI) as a trend or a short-term fad, but as a theme it is becoming increasingly influential in the global sector.
We are living through very challenging times which were unforeseeable only months ago. As the pandemic spread in February markets started to fall with the FTSE 100 reaching an intraday low of 4,898 and a closing low of 4,993.89 on 23rd March.
Investment in electric vehicles has been relatively slow to gain momentum in Europe but a significant shift occurred in 2019 with €60 billion of investment secured to produce electric vehicles and batteries, 19 times more than in 2018.
It is undoubtedly more challenging to manage income portfolios given the current global economic backdrop. For example, dividends from global equities are expected to fall somewhere between 15% and 30% this year.
The falls in this bear market have not only been rapid but also relatively savage and deep. In an attempt to understand what could be in store for the future, we can turn to past bear markets to predict the potential repercussions and recovery from this bear market
As we look to the second half of the year, the economic outlook is deeply uncertain. Different countries have had markedly different experiences with the virus and the performance of Global market indices will be impacted to some degree if individual countries are forced to re-enter lock down.
National Grid data shows that continuous time in the UK without using coal for electricity now stands at 38 days.
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