Investment Prospects March 2013

Equities outperform bonds and US growth accelerates

The headlines from Prospect Wealth Management’s latest quarterly Investment Prospects:

  • Equity markets outpace bonds so far this year, as we expected.
  • US growth is accelerating despite tax increases and spending cuts.
  • UK budget does little to stimulate growth and the outlook is for just 0.6% GDP growth this year.
  • Japanese equities have been a significant contributor to performance this year.

Although global growth has been insipid so far in 2013, the US, UK and Japanese stock markets have performed strongly as the outlook for company earnings growth remains positive. European equities disappointed as progress on bank restructuring stalled and the Italian election produced a public rejection of the austerity policies of the technocrat governent of Mario Monti. This episode, along with the recent crisis in Cyprus, shows how difficult it is to implement the restructuring Europe needs to deal with its debt overhang and for the Mediterranean South to become competitive with the North…

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Prospect Wealth Management brings the highest standards of professional investment management to the individual investor, charities and trusts.

Posted in Market Watch

Investment Prospects January 2013

The new year has started on a positive note for equities

The headlines from Prospect Wealth Management’s latest quarterly Investment Prospects:

  • New Year business surveys point to an improving economic outlook for all the major regions.
  • Political risks in the US and Europe are receding for the moment.
  • Bond yields in the UK are rising and have further to go – we remain defensively positioned.
  • Equity markets offer attractive value vs bonds and momentum is positive – we remain overweight.
  • Low volatility alternatives continue to offer attractive value in an uncertain world.

Improving confidence that a slow recovery in the global economy was taking hold led to positive returns from all the major equity markets, except the US, during the last quarter of 2012. Yet again it was the commitment from central banks to keep interest rates low and to use increasingly unconventional methods to stimulate growth that underpinned the rally. As confidence returned, so the undervalued cyclical stocks in our equity portfolios performed strongly, allowing each of our direct equity model portfolios to outperform over the quarter. Bond yields, still close to historic lows in the UK, only rose modestly, reflecting the expectation that inflation would remain around current levels in the short term…

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Prospect Wealth Management brings the highest standards of professional investment management to the individual investor, charities and trusts.

Posted in Market Watch

Investment Prospects December 2012

The latest investment report from Prospect Wealth Management

In summary:

  • Agreement over US tax increases and spending cuts likely sooner rather than later.
  • US and Chinese economic indicators are ending the year on a positive note.
  • Japanese stock market has bounced on news of Abe general election victory.

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Prospect Wealth Management brings the highest standards of professional investment management to the individual investor, charities and trusts.

Posted in Market Watch

Investment Prospects November 2012

The latest investment report from Prospect Wealth Management

In summary:

  • The economic news has been more positive recently in both the US and in China.
  • The US Fiscal Cliff may well create an attractive buying opportunity for equities in January.
  • Elections in Japan offer the prospect of more economic stimulus to come – good for Japanese equities.
  • The Bank of England may be overdoing the gloom in the UK.

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Prospect Wealth Management brings the highest standards of professional investment management to the individual investor, charities and trusts.

Posted in Market Watch, News

Investment Prospects October 2012

The latest investment report from Prospect Wealth Management

In summary:

  • The latest economic news from the US and China is more upbeat.
  • Europe is making good progress towards resolving its structural problems.
  • Bond yields in the UK are expected to edge up further – we remain defensively positioned.
  • Equity markets appear underpinned by Central Bank stimulus – we remain overweight.
  • A more stable investment environment will be positive for hedge funds.

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Prospect Wealth Management brings the highest standards of professional investment management to the individual investor, charities and trusts.

Posted in Market Watch