AI offers a ‘blended’ opportunity for investors
Last summer, the market experienced a brief but sharp contraction in the valuations of major US tech corporations due to concerns over escalating artificial intelligence (AI) infrastructure costs. The investment in large language models (LLMs) has been on the rise, especially since the emergence of ChatGPT in late 2022. Despite the uncertainty of when the […]
Why ESG funds will continue to struggle in 2025
A second term for Donald Trump could have a significant impact on various assets, including bitcoin, Tesla shares, and US equities. While the market has already identified potential winners in this scenario, certain forms of investment, such as ESG investing, may face challenges in the coming years. ESG investing has struggled in recent times, particularly […]
A rate-cut slowdown is on the cards
Inflation is back with a vengeance, surprising many economists and policymakers who thought it was a thing of the past. Just a year ago, the talk was all about rate cuts and economic recovery, with inflation seemingly vanquished. But now, with prices on the rise and inflation hitting 2.6 per cent in November, the outlook […]
What investors can expect next year
The year 2024 was marked by elections, inflation, and rate cuts, but as we move into 2025, the focus shifts to Trump, tariffs, and taxes. With new governments in power in both the UK and the US, contrasting policies are being implemented. The UK’s policies seem to be impacting confidence and growth negatively, while the […]
Four charts that tell the story of 2024
The Rise of Doge-y Crypto: A New Trump Trade As the US election approached, investors were focused on making ‘Trump trades’ in anticipation of policy changes under a new administration. While traditional assets like equities and gold saw gains, the real winner turned out to be cryptocurrencies. While gold continued its upward trajectory, cryptocurrencies like […]
How to find a profitable niche
The Mittelstand in Germany is a crucial part of the country’s economy, consisting of small and medium-sized enterprises (SMEs) that are typically family-owned and play a significant role in driving innovation and growth. These companies contribute around 27 per cent of total company turnover and employ more than half of the workforce in Germany. Unlike […]
A wonderful banking sector? – Investors’ Chronicle
The holiday season is upon us, and what better way to spend a cozy afternoon than watching the classic film “It’s a Wonderful Life”? This 1946 movie tells the heartwarming story of George Bailey, a man who sacrifices his own dreams to run his family’s mutual association, the Bailey Brothers Building & Loan. While not […]
How investors are caught out by popularity
Investing in the stock market can sometimes feel like a popularity contest, where share prices reflect more than just a company’s performance. Just like how “Strictly Come Dancing” is more about entertainment than technical dance skills, the stock market can be influenced by various factors beyond just financial metrics. One example of this is the […]
Are ‘dog’ funds actually a contrarian buy?
Investment professionals in the City have a tough job, made even more stressful by the bi-annual release of the “Spot the Dog” report by Bestinvest. This report, in circulation since 1994, is known as the guide that fund managers dread, as it exposes underperforming funds in a straightforward and impactful way. For managers who find […]
New pay voting rules miss the bigger picture
The Investment Association (IA) recently updated its Principles of Remuneration, which serve as a framework for determining executive pay. The goal is to create fair and transparent pay structures that are aligned with performance, ultimately benefiting shareholders in the long term. However, finding the right balance has been challenging, with criticisms of the guidelines being […]