High oil prices are still the cure for high oil prices. In October 2021, West Texas Intermediate (WTI) crude oil advanced to more than USD 80 per barrel—a level last seen in 2014—reflecting the mismatch between a sharp, year-over-year recovery in global energy demand as economies reopen and the time needed for the industry to ramp up output to pre-pandemic levels. The upsurge … [Read more...] about Higher Oil Prices Unlikely to Prove Sustainable
Investment strategies
What returns can investment markets deliver over the next ten years?
The past decade has been an astonishing period in financial markets generally. Global equities have risen in value by almost 300% over this period, led as usual by the US market, while global bond markets have returned more than 30% over this time frame (and well over 100% over the past two decades). The reasons for this asset price inflation are manifold, among them the … [Read more...] about What returns can investment markets deliver over the next ten years?
Finding opportunities in an unloved market
The UK market is unloved and under allocated to, while at the same time the drivers of growth are changing in its favour. For those who are prepared to be selective, concentrated and absolute in their thinking, the UK is currently offering some fantastic opportunities for capital growth. Like all chapters in history, investment cycles do turn. Tech re-rating, falling bond … [Read more...] about Finding opportunities in an unloved market
Stagflation and supply bottlenecks: implications for asset allocation
Worries about stagflation have come to the fore recently as supply bottlenecks threaten to keep inflation elevated even as economic growth slows. While the consensus amongst policymakers is current inflation will be transitory, some investors are starting to worry about a return to the stagflation of the 1970s. That may be an overreaction: the global economy, is projected to … [Read more...] about Stagflation and supply bottlenecks: implications for asset allocation
Volatility looms as support is withdrawn
The U.S. Federal Reserve (Fed) is on the verge of announcing that it will begin tapering asset purchases, following similar moves from the European Central Bank and some other, more peripheral central banks. At the same time, U.S. government tightening will soon turn fiscal policy from a tailwind into a headwind. What impact will this have on financial markets? The business … [Read more...] about Volatility looms as support is withdrawn
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