QuotedData’s economic round up – January 2018 – is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned. Kindly sponsored by Martin Currie
January Economic and Political Roundup
A collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned.
Roundup
Donald Trump’s tax reforms were well received by US corporates. Markets hit new highs in December with the UK market having a particularly good month. This was helped by strong performance from mining stocks and energy stocks (on the back of a higher oil price) as global growth picks up.
Global
Faster growth in economies and earnings seems to be making commentators more optimistic but are investors complacent about risk?
James Will, chairman of Scottish Investment Trust, notes that policy responses to populism have been seen in a positive light by markets. The manager of that fund believes there are now signs of complacency in investors’ attitude to risk. Katy Thorneycroft, manager of JPMorgan Elect Managed Growth, says that recession risks are muted, and a combination of global earnings upgrades and loose financial conditions are supportive for stocks. The managers of Seneca Global Income & Growth think inflationary pressures will remain fairly benign, allowing central bank policy to stay essentially accommodative. Peter Ewins, manager of F&C Global Smaller Companies, believes favourable economic conditions should be reflected in company results. Nick Greenwood, manager of Miton Global Opportunities, finds it hard to imagine meaningful interest rate rises but wonders whether investors may be less inclined to lend to highly indebted nations, individuals and corporations.