Emerging Markets Rock – We normally take investment recommendations from the large investments houses with an equally large pinch of salt.
We make an exception for BlackRock.
They have recently advised that their view on Emerging Market equities is a positive one and that investors should to increase their investments in this sector. Their view is, that Emerging markets will benefit from a pickup in global growth and a lower-for-longer interest rate environment.
The current interest rate environment and stabilisation of the US Dollar makes high yielding EM assets relatively attractive.
Investors have been increasing their investments in Emerging Markets and as a result EM equity exchange-traded and mutual funds have attracted $26 billion of inflows since February.
If you are an existing private client of ours you will have already received notice of the changed asset allocation of our model portfolios.
“May you live in interesting times” …
This quote allegedly is a translation of a Chinese curse, although the more accurate translation is, “May he live in interesting times”. Curses are normally quite explicit but this is rather subtle. Devilishly clever the Chinese, I wonder what your interpretation is?
We do live in interesting times, so we appear to be cursed!
The investment markets appear to have shrugged off Brexit and even the long term Coppock Indicators have issued a number of buy signals.
Our advice is to tread carefully. This could prove to be a tricky time for investors.
Disrupters such as Uber are creating (as you would expect) considerable disruption in economic markets, Uber has gone from a minnow of a company to a massive multi – national in just a few years.
Governments continue to print money, so whatever currency you hold, the value of it is being reduced year after year.
The Next Economic Crisis
Whenever an economic crisis occurs, there are winners and losers.
Those who have not prepared for such a crisis will lose out financially to those that have, there will be a transfer of wealth from the financially unaware to the financially agile. Which of these would you prefer?
In order for our clients to be in a reasonable financial position – we have been making more frequent adjustments to our Model Portfolios.
In addition we make sure we include private equity investments in our portfolios. Private Equity is the second largest sector by size, but top in terms of performance. However this sector of the investment markets (often ignored by advisers) will, we believe, weather any financial storm better tha the market as a whole if the market does head downwards
Finally other sectors worth considering is Pharmaceuticals and Biotech and Technology with good potential to make profits in these areas if you get your selections right.
Are you happy with the way your portfolios are performing, if you are unsure, why not contact us for an appraisal hit this link Contact Us