Is this the end for Banks?

The banking industry has undoubtedly changed. COVID-19 is proving to be a massive disruptor of business models. The huge impact on future cost structures, income generation opportunities and returns on equity, will likely also influence the performance of their stocks in the long term. Long before the pandemic, the industry was navigating a challenging operating environment. In Europe, for example, banks faced low interest rates, unfavourable regulatory conditions, and poor… Read More

S&P 500 hits all time high – are we really going into a bull market again?

Have we turned a corner? That’s the question that everybody is asking in the United States but yet is not on the lips of even one investor in the UK. So what’s going on and why such a large disconnect between two economies which in the past have always moved so closely together? Certainly in the States it appears that once again the risk appetite is back. The S&P 500… Read More

Technology stocks still going strong… for now

The gap in performance between the tech-biased Nasdaq Composite and its rival benchmarks in the first half of 2020 has been dramatic. The index has enjoyed an ever-widening lead between itself and the Dow Jones Industrial Average and the S&P 500 index. Much of this is down to the perceived resilience that technology companies have within the pandemic. The theory is that the structural growth these stocks offer is more… Read More

Could poor UK earnings lead to higher equity prices?

It’s tough to be excessively positive on the outlook for corporate profits in the midst of a global pandemic. But that’s not going to stop eternal optimists as we dive deep into the UK quarterly reporting season. This period provides UK investors with an opportunity to look beyond the health crisis to provide justification for the sharp stock market rebound we’ve seen in recent months. Stocks have spiked higher whenever… Read More

The Wirecard Scandal

It appears that it’s not just Covid-19 that we need to be concerned about because in recent months we have seen an escalation in fraudulent financial cases which is causing companies to buckle. Whether or not these frauds are coming to light because of the pandemic doesn’t actually matter because eventually a fraud will be found out. What’s worrying is that they are not being picked up even by the… Read More

The Slow Road to Recovery

As markets bounce around seeking stabilisation, at a time when European countries and individual US states gradually start to reopen, UK investors can now start to survey the wreckage. The US unemployment picture signals some of the fallout. It’s plain to see that President Trump’s hopes for a tight job market have vanished. What was once a cornerstone of his re-election campaign is now looking more like an albatross. The… Read More

Don’t Forget the investment opportunities from Brexit

Many UK investors are looking towards European stocks in the hope that there’s been a fundamental shift in the region’s prospects. After all we are Europe’s closest neighbour and with Brexit (yes, do we still even remember that) now in full swing, the changing dynamics between Europe and the UK will undoubtedly give rise to great investment opportunities. However part of the problem has been that “Europe” has too often… Read More

Is now the time to buy British Airways?

  If there was ever an example of the disconnect between Main Street and Wall Street, the stock market behaviour during the rising social unrest in the US exemplifies it. The stock market has risen against all the odds and this is not the first time that we are raising this as a red flag because many investors are clearly getting carried away. We are speaking to more and more… Read More

Car Makers back on the Road

UK investors would have been disappointed had they invested in European carmakers in recent years. This sector has been a massive laggard in a region that was already struggling. For context, industry stocks were dragged lower due to four main reasons:   Structural threat of “CASE” (connected, autonomous, shared, electrified) mobility. The car industry is going through significant structural change. The rise of companies like Tesla and Uber reflect a new… Read More

Stock Market Continues to Rally, But Buyer Beware

With the coronavirus continuing to impact, UK investors may need to get used to the concept of: “It’s different this time.” Time will tell as to whether the effect of the pandemic is more than just transitory. The concern is that the investing environment has changed structurally and personal finances will suffer. At the very least, current investor sentiment remains cautious. Recent surveys show that individual and institutional investors are… Read More

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