Not all recent UK company results have made pleasant reading for shareholders. Some highly regarded retailers – such as Next and Kingfisher – have disappointed, and not just because of the recognised headwinds of Brexit and currency. Something bigger seems to be happening. Across the whole of Europe, the retail sector has lagged the main […]
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Tag Archives: risk
New bubbles from misguided monetary policy
September 22, 2016 
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Have any lessons been learned following the Great Financial Crisis? Around the world, it looks like new bubbles are growing. Certainly, the crisis showed that central banks and politicians can move decisively on the threat of economic collapse. But the sequel has been years of bad policy; propping up banks, bad loans and unsustainable growth. […]
Continue reading 8 years on, has Lehman cut global bank risks?
September 15, 2016 0 Comments
The Great Financial Crisis still casts a shadow in the industry, eight years on. The fear remains that it might not be the main event, but simply advance warning of something bigger. After two decades of accumulated bank leverage and a few years of irresponsible lending, the remedy has mainly been sticking plasters. Regulation has […]
Continue reading Not what was forecast: UK index funds lagging active managers
July 31, 2015 0 Comments
Many UK active funds are now outperforming passive funds. But prejudices rarely disappear when hit with the facts. It is human nature to disregard data that contradicts our misplaced beliefs. This may be why little attention has been paid to the remarkable results of many active UK fund managers – in the face of much […]
Continue reading Illusory liquidity and other risks from misguided central bank policy
July 7, 2015 0 Comments
Does liquidity matter? Not, it seems, to regulators and central banks. Little thought is being given to the global systemic risk created by today’s liquidity illusion. In a world awash with money, trading is actually drying up, with little depth in many markets. Entering positions is easy, but the exit doors could prove surprisingly narrow. […]
Continue reading QE’s unintended consequences: Pension deficits to hit balance sheets
February 5, 2015 0 Comments
QE is having some serious unintended consequences, increasing pension scheme deficits and hitting company finances. Driven by liquidity and deflation fears, UK government stock, gilts, beat shares and most other asset classes in 2014. Long dated gilts gained over 20%. The trend has even accelerated already this year. Yet many UK pension funds, endowments and […]
Continue reading When will the ECB crack down on banks’ related party lending?
September 22, 2014 0 Comments
Will the European Central Bank’s asset quality review spot all the problem banks? Asset quality is a risk factor in the European Banking Authority (EBA) Comprehensive Assessment, but regulators may be missing a key underlying pattern in failure. Banco Espirito Santo has highlighted the issue of inter-related lending: loans to shareholders, affiliates and related parties. […]
Continue readingEmerging Markets will see outflows as risks rise
August 7, 2013 3 Comments
Emerging markets have been the surprise disappointment of 2013. What happened in the first half of 2013 was a remarkable divergence between emerging markets and the US Dow Jones Index. Most emerging markets lagged the Dow by more than 20%; rarely has asset allocation between mature and emerging markets mattered quite so much. Few people […]
Continue readingDealing with underperforming managers
April 3, 2013 0 Comments
From CFA Inside Investing. Clients and their advisers see investment managers at their best in new business presentations. Data can be carefully selected for a pitch, or in a brochure promoting a fund. And, usually, investors have a preference for the style they would like in their manager; value or growth, momentum or contrarian. It […]
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Behavioural Edge 
Fund liquidity – the key issues
How should investors view fund liquidity? After an unexpected high-profile fund gating, this risk is now front-of-mind for advisers and clients. More regulation lies ahead, but debate is needed. There is a danger that the wrong lessons will be drawn from recent events. Stockmarket liquidity ebbs and flows, with wider sentiment often exaggerating investor pressure […]
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