As the one of the first countries to recover from the social and economic effects of coronavirus (and assuming that there is no second wave), China’s determined by two drivers: Chinese economic policy while the rest of the world struggles and American policy towards China. With regard to domestic economic policy, we have long highlighted that, as a country with capital … [Read more...] about The US hegemon versus the Chinese challenger: echoes of history
Investment strategies
China have the firepower to lead a recovery
Despite near term uncertainty, including the economic fallout from Covid-19 and a recent re-escalation of US China tensions, we remain positive on the outlook for China equities. In a growth and yield scarce environment, we believe China equities offer the attractive combination of structural growth, the policy firepower to sustain that growth, an improving quality of growth … [Read more...] about China have the firepower to lead a recovery
Irish companies – The crossroads between climate change and COVID-19
Ireland is at a crossroads in more ways than one. As we begin to emerge from the crisis caused by COVID-19, it is clear the economy will need help to get back to a normal footing. The question is, do we use the crisis as an opportunity for a reset of our environmental targets, or do we take the approach that growth must come at any price? An improving climate and macro-economy … [Read more...] about Irish companies – The crossroads between climate change and COVID-19
EU delivers comprehensive fiscal rescue package
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
What has happened to diversification?
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?
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