Just Stop Selling UK Equities!
At the start of 2022, we wrote a paper entitled ‘How to Survive if the US Equity Bubble Pops: Five Reasons to Buy UK Value’ which proved particularly prescient. By the end of the year, the US equity bubble had indeed popped, and the S&P 500 Index had declined by 18% with the technology heavy […]
Another bite of the cherry
There seems to be a belief amongst many investors that value can only perform if interest rates go up because that is what they have observed in the recent past. For about a decade interest rates have fallen and growth stocks have done significantly better than value stocks. Some investors have assumed causation here and […]
Macro panic creates value opportunities at the stock level (again)
Here we go again. We had optimistically thought that the withdrawal of central bank stimulus would bring an end to a decade in which fundamentals and valuation counted for nothing and the only game in town was guessing the next move from our monetary central planners. But here we are again. The Russian invasion of […]
Investment opportunities in Asia ex China
Asia emerged out of Covid-19 stronger. Early signs of recovery were evident from rising industrial production and retail sales while mobility recovered close to pre-Covid levels in late 2020. We see this momentum accelerating throughout the rest of 2021 as the global economy recovers supported by re-openings and positive vaccine developments. Asia’s aggregate manufacturing rose […]
Are these quality growth stocks neither quality nor growth?
We have previously written about Apple whose lacklustre earnings have parted company with their skyrocketing share price (put in link to previous blog on Apple). Clive Hale updated this concept recently in his excellent ‘Views from the Bridge’ Blog .
Dear student
Dear Student, I admire your passion and your resolve in the fight to save the planet. I agree 100% that the world is on an unsustainable path, that business as usual will lead to a devastating outcome, and that we need to align with the Paris Agreement and limit global warming to 1.5° Celsius.
Why are investors hesitant to exploit value?
The case for owning value stocks today would seem to be compelling. 1. The gap in valuations versus growth stocks is wider than in 2000 Source: Morgan Stanley, 31 March 2021. 2. Value sectors offer the greatest earnings growth in the next two years Source: Morgan Stanley, 31 March 2021. And are also getting the […]
Wilful waste…
Wilful waste… … Globally, the ambition for reducing food loss and waste is enshrined in the UN’s Sustainable Development Goal (SDG) 12.3.
Straws in the wind?
In a year of extreme uncertainty caused by the coronavirus, it is not surprising that investors have sought out the relative safety of companies …
A merry dance…
I wrote on the subject of profit margins last year in Margin Call and how we try to normalise them as part of our company evaluation. I referred to The Heinz-Kraft Company (KHC) and how under 3G Capital, a private equity firm, margins were significantly raised at KHC. A consequence of those expanding margins was […]