While tariffs remain a concern, the key issue is the degree—which we deem moderate—of U.S. recession risk. The current global backdrop makes the U.S. dollar unlikely to strengthen. Earnings growth expectations are modest, valuations are undemanding
This is close to being the longest economic expansion on record. Nobody knows exactly when it will end, so it’s worth considering what investments could rise in value when equities and other risk assets fall during the next downturn.
Investing in equities can be like managing a football team – you can’t just pick all the most up-and-coming, expensive players. It’s better to include some players who are perhaps past the peak of their international careers and hence a bit of a bargain,
Seeking income in a low rate environment has seen investors search for yield in riskier assets. While the risk associated with higher yielding investments can’t be eliminated, we look at three ways in which that risk can be reduced.