Sunday, 12 August 2018

Stories we should be thinking about

Stories we should be thinking about


It has been a few weeks since I put together one of these Sunday collections
...well the corporate results season has been very busy recently.


How have US earnings looked?  Well good in absolute terms helped by the tax
cuts in recent months but no strong US dollar effect?  Don't be so quick...the mix
is important here 'Information Technology, Energy, and Materials sectors were
the largest contributors to earnings and revenue growth in Q2 for S&P 500
companies with more global exposure' (link here)




Not yet the start of a trend but value has, at least, stopped getting worse versus
growth (sourced from here).  That’s where I would look for…’value’


So how to think about big geopolitical matters? Well, have a read of this
from John Mauldin



Of course Turkey’s economic and financial market travails have been creating
headlines in recent days with another twist of the US trade pressure.  My
thoughts?  Messy but do not suppose this has not been happening for a while.  
For example check out the difference between hedged and non-hedged returns
over the last few years:




I like and agree with this on the economy which is 1% of global growth
at-the-margin:




And - as this headline puts it in the Financial Times - another schism
potential in the world...although I believe Europe, Russia and China will
want to get closer and not further away.



Despite all of this, the biggest opportunity at-the-margin at the moment?  
Well that would be the emerging markets…

To read the rest of Stories we should be thinking about click HERE.

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