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Samantha Gleave: Looking beyond the US in search of yield

Having recently completed our annual review, we are now in the process of restructuring our portfolios. Here I take a look at some of the changes to the Global Income Fund.

John Husselbee: Why you should use all the instruments on your dashboard

A recent request for some equity index valuation comments saw me trawling through the seemingly endless data possibilities on my Bloomberg terminal. One surprising statistic I came across was a FTSE100 price/earnings (p/e) ratio of 43x. This number sat alongside some more sensible sounding multiples for other major markets, such as 17x for the US Dow Jones and 22x for the EuroStoxx. 

Hugo Rogers: Monsanto needs deal to unlock the value of substantial IP

Yesterday evening’s news of an unsolicited takeover offer for Monsanto from German pharma/chemicals giant Bayer was not a surprise; the first report highlighting their interest was published last week. And it is no surprise that a merger of Monsanto’s market-leading seeds business with Bayer’s market leading Ag Chemicals business is seen as good industrial logic. Monsanto themselves have been openly discussing the value of offering tailored seed and chemical combinations to farmers for months, and this explains why they attempted to acquire Syngenta on three separate occasions in the recent past.

Patrick Cadell: China experiencing credit cycle, not crisis

Recent data points have confirmed our view that China is experiencing a cyclical upturn. Perhaps the most important data point in April was industrial profits, up 11.7% year on year, the best growth since June 2014 and a sharp acceleration from the negative prints of 2015. This positive momentum in industrial profits should help drive earnings upgrades and provide support to the equity market.  

Hugo Rogers: World Bank water report reiterates structural investment case

“The impacts of climate change will be channeled primarily through the water cycle, with consequences that could be large and uneven across the globe”
  
Last week the World Bank issued a report - High and Dry: Climate Change, Water, and the Economy* – which opened with this powerful message. 

Anthony Cross: Why we were right to stick with Rightmove last year and why a high p/e ratio doesn’t deter us this year

Why we were right to stick with Rightmove last year. Just under a year ago, we used Rightmove as a case study of how possession of Economic Advantage can provide barriers to competition and underpin good profit levels. The reason we used this stock was that OnTheMarket.com had recently been launched as a rival property listings site by a powerful group of estate agents – Agents Mutual – who were determined to break the Rightmove/Zoopla duopoly.  

Anthony Cross: Buying and selling discipline – taking clinical, not emotional, decisions

Investors tend to find it easier to buy rather than sell a stock. When buying the emotion may contain a little trepidation, but generally the overall feeling is of excitement. There is a potential profit to be made and an intellectual battle to be won against the market’s perceived mispricing. The buying decision is often rushed and there is an impatience surrounding the execution of the trade. When selling however, the emotion is frequently reversed, particularly if the investment has gone sour. No one likes to crystallise a loss and selling will underline that an intellectual mistake has been made. Denial is frequently the default response and the stock will be held. Holders of bank shares in 2008 spring to mind. 

John Husselbee: What the Brexit vote means for UK markets

Nobody really knows what the future holds if the British public votes to leave the European Union on 23 June. What we do know is that abandoning a long-term investment plan based on a short-term period of anxiety has rarely made sense. 

Disclaimer

Any opinions expressed should not be construed as advice for investment in any [product or] security mentioned or which may form the underlying content of any topics discussed in this blog.  The information and opinions provided in this blog take no account of the investors’ individual circumstances and should not be taken as specific advice on the merits of any investment decision.   Any opinions or information provided has been based on sources we believe to be reliable at the time of this blog’s preparation: no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of such information.  Neither Liontrust, nor any of its partners, employees, representatives or agents accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of our research or its contents.

Liontrust, its partners and/or employees may have had, have or will have positions in the securities (or related financial instruments) which are those referred to, or those underlying the content discussed in this blog.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a regulated investment advisor or licensed stock broker before investing.

Shares in companies referred to may be relatively illiquid and hard to trade, therefore riskier than other investments and there could be a large bid/offer spread, so if you need to sell soon after you’ve bought, you might get less back than you paid. This can make them riskier than other investments.