When markets are volatile, investors tend to consider repositioning their portfolios in response.
In his latest column for leading South African publication Financial Mail, Deon Gouws (Chief Investment Officer at Credo Wealth) explains why the best approach often boils down to doing nothing at all in the circumstances.
April followed a similar narrative to the previous quarter, with negative sentiment persisting from the Russia-Ukraine conflict, inflation standing at highest levels in decades, and concerns over increasingly hawkish monetary policy from central banks. The S&P 500 and Euro STOXX 50 finished the month down by 8.7% and 2.0% respectively, whereas the FTSE 100 finished the month up by 0.7%. The FTSE 100 has been a relative outperformer, aided by strong performance in its energy and materials constituents off the back of the inflationary and rising interest rate environment, whereas the S&P 500 continues to be pulled down by its heavy technology weighting. In fixed income markets, yields on US, UK and German 10-year bonds increased by 60, 30 and 39 basis points respectively. The pound fell by 4.3% against the US dollar and 4.7% against the euro.
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Exactly twelve months ago, we last wrote about the defence sector. At the time, we saw an attractive opportunity, with the sector trading at the lowest absolute valuation in many years and the lowest relative valuation in decades. Out of favour areas of the market can often provide opportunities if the risks are priced in. Low valuations provide...
March witnessed a small pull back in developed equity markets from the previous month, however the combination of heightened geo-political risk and hawkish monetary policy continued to fuel market volatility. The S&P 500 and FTSE 100 gained 3.7% and 1.4% respectively, whereas the Euro STOXX 50 finished the month down by 0.4%. The Russia-Ukraine conflict continued to apply upward pressure on energy and commodity prices, with brent crude oil peaking above $120 per barrel and finishing the month up by 12.1%. These price surges continued to contribute to inflation figures and raised concerns over economic slowdowns, particularly in export-dependent areas. In fixed income markets, the yields on US, UK and German 10-year bonds increased by 51, 20 and 41 basis points respectively. The pound fell 2.1% against the US dollar and 0.7% against the euro.
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The war in Ukraine has led to widespread sanctions of businesses linked to Russia.
In his latest column for leading South African publication Financial Mail, Deon Gouws (Chief Investment Officer at Credo Wealth) looks into the UK's confused relationship with Russians and their money.
We recently took the decision to sell Crown Resorts from the Best Ideas Portfolio and Dividend Growth Portfolio as well as the Credo Global Equity Fund. On the 14th of February 2022, it was announced that Crown had entered into an implementation agreement with Blackstone, whereby Crown shareholders would get to vote on accepting a...
February was a challenging month concerning geopolitics and global monetary policy. The S&P 500 and the Euro STOXX 50 both finished the month down by 3.0% and 5.9% respectively, while the FTSE 100 gained 0.3%. The Bank of England raised the UK base rate by 25 basis points to begin reigning in inflation, which currently sits at 5.5%. Investor confidence weakened, with growing market expectations of increased rate hikes from the US Federal Reserve and the European Central Bank. Later in the month, fears were realised as Russia invaded Ukraine. This invasion built on existing negative sentiment in global equity markets and, with a large portion of the supply of commodities in question, the price of oil rose by 11.5%. Yields on US, UK and German 10-year bonds increased by 5, 11 and 12 basis points respectively. The pound ended the month relatively flat against both the US dollar and euro.
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The war in Ukraine has been dominating headlines over the past few weeks.
In his latest column for leading South African publication Financial Mail, Deon Gouws (Chief Investment Officer at Credo Wealth) offers perspective.
Credo's Head of Equities, Jarrod Cahn, recently spoke to Citywire about investing in the Defence sector. He discusses the outlook for the sector, the recent re-rating and the effects of ESG investing.
At this distressing juncture, knowing one's risk is vital. Economic loss is one of these risks and, as your partner, Credo has only minimal exposure to Russia in its discretionary solutions.
Jarrod Cahn, Head of Equities at Credo, recently met up with Citywire Wealth Manager to discuss Credo's investment philosophy, the current market rotation from Growth to Value and his career to date.
Earlier this week, Deon Gouws (Chief Investment Officer) and Jarrod Cahn (Head of Equities) participated in an discussion about Russia, Ukraine and the impact ongoing events may have on investments.
This online panel was organised by Boutique Collective Investments, host of the BCI Credo Global Equity Feeder Fund in South Africa.
The recent article by Credo Wealth CIO, Deon Gouws, about the Russia-Ukraine conflict and its impact on the financial world, was featured on leading South African financial news website Moneyweb.
For the better part of the last two years, we have largely divided stocks into two categories: those stocks which have benefited from the pandemic, the 'Stay-at-Home' stocks and those stocks which were severely negatively impacted during the pandemic and would benefit from economies 'Opening-Up'. And, as we have battled through the...
The war in Ukraine has officially started and financial markets are falling in response. Deon Gouws, Chief Investment Officer at Credo Wealth, offers perspective.
Two years ago, the Credo Global Equity Fund was made available to South African investors (in local currency) in the form of the BCI Credo Global Equity Feeder Fund, hosted by Boutique Collective Investments (BCI).
Earlier this week, BCI hosted a virtual conference which was attended by an audience of some 300 advisors and investors. Deon Gouws, Chief Investment Officer at Credo Wealth, shared perspectives about global markets and the prospects for value investors against a backdrop of high valuations and increases in both inflation and interest rates.
Following a strong year for equity markets in 2021, January witnessed a tough start to 2022. The US Federal Reserve acknowledged that inflation is unlikely to be transitory and they expect to raise interest rates multiple times throughout the year. Additionally, geopolitical tensions surrounding Eastern Europe added to uncertainty and market dislocation. Growth stocks saw the most volatility in the month, especially 'Work from Home' stocks which benefited from changing consumer patterns evident during the pandemic. The S&P 500 and Euro STOXX 50 both finished the month down by 5.2% and 2.7% respectively, whereas the FTSE 100 gained 1.1%. In fixed income markets, the yields on US, UK and German 10-year bonds increased by 27, 33 and 19 basis points respectively. The pound fell 0.6% against the US dollar and rose 0.7% against the euro.
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The press is always awash with investment strategists sharing their views about prospects for financial markets.
In his latest column for leading South African publication Financial Mail, Deon Gouws (Chief Investment Officer at Credo Wealth) revisits the folly of forecasting.
In a recent interview with Citywire South Africa, Credo's CIO and Global Equity Fund manager discuss Credo's recent strong fund performance in context of changing market conditions.
Ainsley To, Credo's Head of Multi Asset, recently spoke to Citywire about his background in investment management. He discusses the experiences that have shaped his thinking as well as challenges & opportunities for young people entering the industry today.
'Inflation targeting' is the bedrock of modern monetary policy. Central bankers specify an inflation target and tweak interest rates accordingly as inflation breaches the target It has been hard to ignore the topic of late. Inflation rates in the US have soared to close to 40-year highs of over 7%, driven by a combination of...
After a volatile end to the previous month following the emergence of the Omicron variant, markets quickly recovered as data from South Africa and the UK indicated a lessened risk of severe disease. With higher vaccination rates, particularly in Asia, the global economy is expected to be less vulnerable with the prospect of potential earnings growth in 2022 outweighing rising hospitalisations. The S&P 500 crossed an all-time high and finished 4.5% up from the previous months' close. The Euro STOXX 50 and FTSE 100 finished the month up by 5.8% and 4.8% respectively. UK inflation rose to 5.1% along with increasing labour market tightness and accordingly the Bank of England raised the base rate to 0.25%. In fixed income markets, the yields on US, UK and German 10-year bonds increased by 7, 16 and 17 basis points respectively. With disruptions to oil production, Brent Crude oil rose by 12.9% over the month. The pound was up against the US dollar and euro by 1.8% and 1.4% respectively.
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Over the past few weeks, UK Prime Minister Boris Johnson has been fighting for his political life after a number of cover-ups under his watch had come to light.
In his latest column for leading South African publication Financial Mail, Deon Gouws (Chief Investment Officer at Credo Wealth) compares the dishonesty of some politicians to scandals in the business world and questions the value of interviewing management as part of the investment process.
