Investors humming to a different tune
‘This is just a normal market environment. The abnormal period was the one we have been in since 2008, but because everything went on for so long, investors have somewhat forgotten about cycles and volatility.’ Nick Clay, manager, Redwheel Global Equity Income Fund Set against a backdrop of inflation hitting multi decade highs and increased […]
All kinds of everything…
Rosemary Scallon, better known as Dana, was the winner of Eurovision in 1970 with “All kinds of Everything”. Hers was a first win for Ireland on the way to seven titles, one better than arch Eurovision rivals Sweden! While I suspect my UK audience are not huge Eurovision fans, given Ukraine’s victory this year and […]
Share buybacks vs. dividends
We are often asked: ‘why not look at total return yields to shareholders (dividends and share buybacks) rather than simply dividends?’ In countries such as the USA, share buybacks are favoured over dividends by companies, and it would appear by investors too. European companies may also be increasingly favouring this method of “return to shareholders”. […]
COP27- the return of the fossil lobby
In 2021, oil companies were excluded from sponsorship deals and official involvement at the COP26 Glasgow climate summit. A year on and there is a much warmer welcome for the industry at COP27. The decision in Glasgow was right on sponsorship but wrong, in my view, on participation. We need the oil companies, and particularly […]
Reversion to long-run mean
Having started working in asset management thirty-four years ago, I used to pride myself on the fact that I had experienced a variety of financial market conditions, witnessed many economic cycles and seen booms, busts and manias come and go. I have recently been compelled to challenge this notion, which has made me consider that […]
Investors caught in the headlights?
When markets turn from being a one way, upward only trend to that of heightened volatility it can paralyse investors. It can cause uncertainty, fear and dramatically shortens the time horizon in which many investors think. Attitudes tend to change from consistently investing over time (easy to do when your assets just keep on rising) […]
Redwheel Global Equity Income Outlook
Read the latest outlook from the Global Equity Income team.
Thinking of selling cyclical stocks to buy defensives now?
Ask yourself these questions… Since the start of February, cyclical stocks have performed much worse than the wider market as many investors have become concerned that rising interest rates and high energy prices will lead to an economic slowdown or possibly a recession. As the chart below shows, more defensive sectors such as utilities and […]
Investment Opportunities in Latin America
We believe we have reached a turning point in an asset class which has been overlooked for years. Although Latin American currencies were cheap and equity valuations were attractive prior to the pandemic, the asset class did not outperform. However, global macroeconomic conditions have changed dramatically and a combination of strong commodity prices, improving current […]
Rewind and fast forward
(Charts that make you go… hmmm! Revisited) In February 2021 we looked at ten charts showing just how ebullient many investors had become following years of zero interest rates along with central bank money printing and government bail outs that followed the pandemic. Fast forward just a little over a year and the world looks […]