QuotedData’s economic round up – March 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 Polar Capital
In mid-February, stock markets fell on concerns that strong global growth and emerging evidence of rising inflation would lead to further hikes in interest rates. The UK market and to a lesser extent European markets also reacted to concerns about the progress in the Brexit negotiations. US Government bond yields crept up in contrast to German Bunds.
Positive outlooks toned down by concerns about valuations, inflation, central bank policy and politics.
The Lord Rothschild, chairman of RIT Capital Partners, questions whether stock markets have experienced a resurgence in volatility and asks whether current valuations, which (in their opinion) remain excessive, adequately reflect the risks which lie ahead. The managers of Ruffer Investment Company say that change is happening, as inflationary pressures build, and the era of QE comes to an end. They also highlight that we are seeing societal and political upheaval, (e.g. the rise in populist movements). Peter Moon, the chairman, of Scottish American joins with many in this month’s round up to consider the longer-term implications of rising inflation, Brexit and President Trump’s presidency. He also points to the related fact that global economies, with the possible exception of the UK, are growing. Carolan Dobson, chairman of Brunner, agrees and highlighted, continental Europe, which is experiencing its strongest period of economic growth since the financial crisis. She goes on to say, however, that valuations are high, especially in the US.
QuotedData’s economic round up – March 2018