Don’t blame it on the property

With a heavy heart – and a heavier bill – Aviva told investors this week that after a tumultuous year for the fund, the firm will shut its main UK Property Fund as well as its two feeder funds on 19 July and return cash to investors “in a fair and orderly manner”. The current…

Europe’s beacon of hope shines light on old problems

After a long quiet spell, Europe is capturing investor interest once again, with the green shoots of a recovery now coming through. After a desperately slow start, vaccination programmes on the continent have stepped up greatly, with ever more jabs set to be delivered in the coming weeks. That, combined with warmer weather and a…

Market resilience in face of Bitcoin crash

Beyond the directly virus-related stories, the week’s news has been dominated by cryptocurrency shenanigans and the return of outright war in the Middle East. Cryptos are the “Reality TV” version of markets – hugely fascinating but having not much to do with reality – and largely purchased by believers and speculators, rather than investors. Having…

Central banks’ answer to cryptocurrencies

Even by their volatile standards, this week has been a roller-coaster for cryptocurrencies. On Thursday, Bitcoin’s value dropped 10% to below $50,000, while both Ethereum and Dogecoin also slumped. Dogecoin – a cryptocurrency which started as an internet joke in 2013 – had already suffered a 25% drop at the weekend, after a whirlwind year…

Market vertigo galore

Last week we wrote how the ‘sell in May and go away’ maxim has historically not shown much merit for investors. At the end of this week, some of our readers may look back at those sentences ruefully. Markets have certainly lost a bit of that exuberance displayed in recent weeks. However, the risen inflation…

Insight: Corporate spreads, or how to also value equities

Inflation is a hot topic for capital markets at the moment. Green shoots of an economic recovery are coming through all over the world, and investors are betting on a post-pandemic boom. Meanwhile, both monetary and fiscal policy is expanding, while consumers and businesses are regaining confidence to spend and invest. This is expected to…

‘Sleepy Joe’ wakes up the US economy

Things are looking good for President Biden as his hundredth day in office passes. The US economy grew by a very healthy annualised 6.4% during the first quarter. While overall growth was a little less than expected, personal consumption accelerated more than 10%. The reason this is not proportionally reflected in GDP growth is because…

Doubling of earnings leaves markets cold

After last week’s lull in global equity markets, most regions recovered their previous highs this week, albeit in somewhat lacklustre trading patterns. Just as there were several reasons why markets were in a bad mood last week, there are many reasons for the more positive outlook this week. Those who were most fearful of geopolitical…