In Focus Monthly - November 2018

A 10% value plunge in emerging market equities this year made it the worst-performing asset class. In this edition, we assess whether our 9% holding recommendation for a moderate risk profile is justified. We’ve also looked at some of the key trends in corporate earnings.

Despite doomers perpetually fetishising the next recession, the last century would tell us that recessions similar to 2008/09 are the exception not the rule.  Our experts advise investors not to run from stocks too early.

In this edition, you can also read why we believe diversified portfolios should lean towards stocks in emerging and developed worlds over high quality bonds.

Oil’s recent sharp price correction indicates we can expect economic downturn, but the price of gold suggests otherwise. In this issue we question whether gold is still a safe haven.

Thorny negotiations over Italy’s budget proposals, diverging economies and interest rate expectations have contributed to a decline in euro/US dollar. Is this divergence priced in by markets?

We hope you enjoy reading this issue.

Peering into 2019

Is there potential for a rebound in the coming six months and how much is divergence and disharmony is priced in by markets?

Q3 earnings recap

It was a tough October for equities markets, with global stocks experiencing their worst monthly returns since 2012.

Gold or oil?

Q3’s sharp correction in oil prices must be a source of wider concern?

What goes down…

While we can still see few signs of the next recession on the horizon, we doubt that the next recession will be similar to the last, in scale or scope.

A growling bond bear

It’s time to take profit on an underweight position in government bonds.

The strategic case for emerging equities

Is our holding for emerging market equities still justified?

Catch up on our older issues of In Focus Monthly: