Economic and Political Monthly Roundup
Kindly sponsored by Allianz
A collation of recent insights on markets and economies taken from the comments made by chairs 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
The New Year brought a reassessment of the direction of inflation and interest rates, with heavy hints of multiple rate rises to come in the US this year. This triggered a sharp rotation away from growth-style investing. The threat of a Russian invasion of Ukraine has not helped sentiment. The net effect has been much more volatile markets.
January’s UK Highlights
A time to reflect and take note
Aberforth Smaller Companies’ managers highlight uncertainties that stem from the continuing effects of COVID-19 and measures that were deployed in 2020 to mitigate the economic damage of the pandemic.
James Henderson and Laura Foll of Henderson Opportunities look at the trends accelerated by the virus.
Henderson Smaller Companies manager, Neil Hermon, explains why smaller companies underperformed over 2021. He also remarks on a noticeable pickup in corporate activity.
Angus Gordon Lennox, chair of Aberforth Split Level Income, suggests that bond yields are yet to fully reflect the threat of higher inflation and higher interest rates.
The managers of BlackRock Income & Growth say that after five years under a Brexit-induced cloud, the relative position of the UK in the eyes of global investors appears to have improved.
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