Ashburton Investments’ discussion on what to expect in 2020
13 December 2019
A year ago, markets were awash with pessimism, and after the US Federal Reserve hiked rates for the 9th time with the prospect of more to come, December ended up experiencing the worst equity market performance in over 50 years.
Monetary easing from most central banks also offered some support to the markets.
07 November 2019
The month of October was good for most asset classes as expectations rose that the
United States (US) and China were closer to signing a trade deal. Monetary easing from
most central banks also offered some support to the markets.
Bond market fears excessive – but investors must be vigilant
04 November 2019
There are numerous current threats facing financial markets – such as an earnings or manufacturing slowdown, geopolitical tensions, the rise of populism and volatile political leaders. However, absent a sudden shock, we do not anticipate de-flation and or a recession in the near future.
Stakeholder activism: A change in the tide
01 November 2019
Stakeholder activism has traditionally been associated with equity investment, but with investors (and asset managers) seeking ways to protect against the downside risk of the listed equity markets and to access diverse return sources, the use of alternative asset classes has become more attractive.
Bond market reaction to medium-term budget policy statement
31 October 2019
The combination of the lower inflation rate at 4.1% year-on-year and the negative market reaction to a somewhat disappointing budget has driven the real yield on the SA 10-year bond to over 5%.
Tracking error vs tracking difference
30 October 2019
The majority of investors tend to look at tracking error when deciding which Exchange Traded Fund (ETF) to invest in, but is this the correct measure to evaluate a fund’s performance? The answer to this question is both yes and no.