The European Union (EU) seems to have finally come together to deliver a comprehensive fiscal rescue package to help member states battle the devastating economic impacts of COVID-19. In her speech to the European Parliament (May 27) announcing the €750 billion package, European Commission (EC) President Ursula von der Leyen said it was “Europe’s moment.” While the 27 EU … [Read more...] about EU delivers comprehensive fiscal rescue package
We've gone from predicting a V-shaped recovery to a U-shape, given the difficulties of lifting lockdown. We are downgrading our forecast for global growth once more to reflect the weakness seen in the first quarter. Overall, we see global activity falling 5.4% this year, a downgrade from our previous forecast of -2.9% and mainly driven by downgrades to the US and China. We … [Read more...] about Recovery will be U-shaped
When we consider modern portfolio management, we think of investors having hundreds if not thousands of bonds and equites in their portfolios to limit exposure to a company, sector or country, ensuring you are fully diversified, right? Nice theory but in practice we are doing the opposite. I argue that we are building highly concentrated portfolios, increasingly reliant on … [Read more...] about What has happened to diversification?
Let’s face it, we’ve all had the ‘what would you do if you won the lotto’ conversation! Tales of sunny islands, spectacular parties and substantial sharing of funds among friends and family normally spring to the top of that wistful and dreamy list! Not to compare winning the lotto with your retirement years but in that stage of your life, after 40 – 50 years of hard work, you … [Read more...] about 5 things to financially plan for at 50
The Covid-19 pandemic has floored the world economy which was already on the ropes as a result of weakening global trade caused in the main by the tariffs dispute between the United States and China. Some leading institutions like the IMF have said that this is the worst economic crisis since the Great Depression. Only time will tell if they are right. Clearly, finding a … [Read more...] about Common sense approach needed to mend global economy