Investments in the Financials sector have performed better than the broader equity market in 2022, but some equities in the space remain below price levels leading into the Great Financial Crisis from 2007-2009.[i] Over a decade of lacklustre performance has some investors wondering how to invest in the sector and whether its recent outperformance can
What is a reasonable equity market return to expect in a given year? 5%? 10%? 20%? Based on Fisher Investments UK’s reviews of financial publications and opinions, many investors cite figures ranging from high single digits to low double digits, based on stocks’ long-term historical average.[i] Whilst the logic behind that thinking is understandable, investors
Rising inflation has grabbed headlines across the globe over the past year, reaching multi-decade highs in many countries in the past several months. From petrol prices to food and travel, inflation has impacted nearly every corner of consumers’ lives. With inflation at such high levels, many people are asking what – if anything – can
Based on Fisher Investments UK’s reviews of market history, we think investing globally is sensible for many investors. However, global investing can introduce a unique feature in owning securities from abroad: currency skew. In our view, investors may benefit by understanding its effect on international equity returns. Currency skew describes the difference in returns on
Fisher Investments UK’s research shows markets look forward – but not too close or far ahead. What does this mean in practise? We think a look at Energy sector performance over the past couple years – and what commentators we follow said about its prospects – may prove enlightening. We have found the next 3
What drives markets? In the short term, financial commentators we follow often cite a broad array of different headline news stories. According to Fisher Investments UK’s research, though, markets’ longer-term, more material moves hinge on surprise – the gap between reality and expectations. What does that mean in practise and how can investors use this
Labour market figures are among the most widely watched economic data in financial publications Fisher Investments UK’s analysts follow. However, jobs are lagging economic indicators – limiting their use for investors, in our view. In our experience, many investors care about labour market data because of their implications at a personal level. Jobs represent people’s
In Fisher Investments UK’s experience, investors often treat equity sectors as monoliths – i.e. as if all companies within a sector will behave the same. For example, giant semiconductor firms’ moves will mirror the entire, broad Technology sector’s, or Pharmaceuticals determines the Health Care sector’s prospects. But Fisher Investments UK’s research analysts have found reality
Whenever the US Federal Reserve (the Fed) – the central bank of the United States – appears to be raising or lowering interest rates, investors invoke a common phrase: “Don’t fight the Fed”. The premise behind this saying is an investor belief that when the Fed (or any central bank) raises interest rates, the move
What will the world look like in 2050? Some trends are easy to forecast – like demographics. Based on birth-rate trends and life expectancies, the UN projects the Earth’s population will top 9.7 billion by then.[i] Sociologists who write in publications we follow foresee the vast majority of that population living in urban areas, theoretically
Note: Fisher Investments UK does not make individual security buy and sell recommendations. Any reference to a specific security in the below is solely made to help illustrate a broader theme we wish to highlight. Nothing in the discussion should be construed as a recommendation to take any action with respect to the companies mentioned.
If you’ve taken the important step to improve your financial life by setting goals, establishing a budget and developing a robust, long-term financial plan, you’re already ahead of many people. But, your family’s financial plan could use some regular care and maintenance. You should review some aspects of your financial life at least once a
Globally, corporate and sovereign debt securities’ yields are historically low—even negative in some countries—hurting fixed interest returns.[i] Furthermore, Fisher Investments UK finds many financial commentators warn those rates are about to rise, and, since yields and debt security prices move inversely, that means investors get little yield for taking the risk of declining prices. That
Terrorism is a real, ever-present risk in the modern world. The recent twentieth anniversary of the 9/11 terrorist attacks reminds us of the tragic human toll and devastating impact to lives, livelihoods and property. While the prospect of a terrorist attack can be emotional and frightening, Fisher Investments UK believes the historical relationship between terrorism
When considering investment risks, in our experience, many investors focus on market volatility (asset price fluctuations)—especially negative swings. Comfort with volatility is indeed an important consideration, in our view. For investors with short-term time horizons—the length of time you need your money to work—a high likelihood of volatility could work against your financial goals. Even
Last year, central banks around the world employed quantitative easing (QE) policies to stimulate economic activity following widespread COVID-related economic lockdowns. While these measures improved investor sentiment, QE may not be as helpful to the global economy as central banks intended. The theory goes that QE encourages lending by lowering long-term interest rates, thereby reducing
Since the onset of the COVID pandemic, equity investing has been a wild ride. 2020 featured the fastest-ever bear market (a fundamentally driven downturn surpassing approximately -20%) and a similarly swift recovery. As the year went on, investors clamored for big-name initial public offerings (IPOs) and IPOs’ in-vogue cousins, special purpose acquisition companies (SPACs). Top
Developed nations’ consumer price indexes (CPI, a government-produced measure that tracks price trends) rose sharply in 2021’s first half, especially in early reopening countries like America.[i] That has stirred concerns faster inflation—i.e. prices rising across the economy—is here to stay, amongst financial publications Fisher Investments UK’s research analysts follow. Some consumers’ personal experience may even
A rapid rebound in crude oil prices since last April, the Organization of the Petroleum Exporting Countries (OPEC) cartel’s shifting production plans, Iran’s potential return as a major global supplier—several big oil developments have made headlines recently. That doesn’t surprise us. Events expected to swing oil prices up or down usually spark much attention amongst
After a challenging 2020, vaccine optimism has shown many financial analysts we follow a light at the end of the tunnel—and they have raised their economic and equity market forecasts accordingly. Many now envision an increasingly bright future, seeing the strong equity market returns over the past 12 months as only the beginning to a
