The “Wizard of Oz” celebrated a magical milestone in August, returning to the town of its original screening to commemorate its eightieth anniversary. Decades after its release, many of the movie’s characters and themes provide parallels to today’s economy and financial markets.
Discretionary investment management is where you agree with the Investment Manager an appropriate level of risk, a set of objectives; which the level of risk may vary dependent on what you wish to achieve, and parameters within which they are allowed to operate and then the manager has the discretion to buy and sell as they see fit. You receive regular updates, usually quarterly valuations and an annual meeting, but you have no input in the day to day management.
Celebrating the 25-year anniversary of the Academy Award-winning movie Forrest Gump, we revisit many of the movie’s themes which remain relevant in today’s world. Forrest Gump’s mother always said that “Life was like a box of chocolates.” This memorable observation could just as easily be applied to the financial markets, as you never know what volatility-inducing headline you’re going to get next.
With ‘fast fashion’ being so prevalent in today’s world, perhaps we should not be surprised that Oscar Wilde’s dictum looks a little slow as the world only racked up four successively positive months before a reversal. May 2019 will not go down in the financial market almanacs as anything other than a shabby month, with the regional pan-European share index falling around 5% and more than reversing any gains seen earlier in the quarter. Broadly speaking, this performance pattern in May – supplemented by the compression of sovereign bond yields – was repeated all over the world.
As someone who needs glasses, I know firsthand that 20/20 vision and the ability to experience the beauty and clarity of life is amazing. As we embark on the start of a new year, clarity and foresight is exactly what investors are seeking, especially with the daily dose of unprecedented headlines we receive. In hindsight, the guidance our team of economists, strategists, and portfolio managers gave last year proved prescient as ~90% of our ten themes for 2019 were accurate.
Welcome to March, a time in the past when I have gone all Shakespearean in my written musings and quoted the famous words imagined uttered to Julius Caesar before his assassination. It looks as if the Ides of March (typically regarded as the fifteenth day of the month) will be just after a series of further Brexit related votes which could provide the greater clarity consumers, industrialists, politicians and investors seem to desire. As one economic survey, focused on the view of UK manufacturers, strikingly put it recently: ‘The march of the makers has turned into a painful crawl, where only certainty about the Brexit way forward can ease the sector’s pain’.