3 driving forces behind European equities in 2018: Schroders

SINGAPORE (Jan 2): Schroders is of the view that Pan-European equities will continue to enjoy good prospects in 2018 – even after their recent gains brought long-term valuations close to historic averages, with the MSCI Europe index up 9.3% year-to-date (YTD).

In spite of ongoing geopolitical events such as Italy’s impending May elections and ongoing Brexit talks in the UK, the global investment manager sees volatility around political events as a potential buying opportunity for active managers to purchase undervalued stocks.

Which of the major stock markets are 'cheap' going into 2018?: Schroders

SINGAPORE (Dec 28): Global investors should beware the temptation to simply compare a valuation metric for one region with that of another, according to global investment manager Schroders.

In a Thursday media release, Duncan Lamont, Head of Research and Analytics, discusses the five ways to measure stock market value, namely: forward price-to-equity (P/E), trailing P/E, cyclically adjusted P/E (CAPE), price-to-book (P/B) and dividend yield.

Populist policies could lead to stagflation, says Schroders’ chief economist

SINGAPORE (April 18): Schroders’ Chief Economist & Strategist Keith Wade says populist policies to restrict trade and migration are likely to lead to stagflation which could impact Asia and the emerging markets (EM).

While markets have rallied following the Brexit and Donald Trump votes, Wade notes that dovish signals from the US Federal Reserve and signs of a global recovery were already falling into place before the two events.

How one asset manager is preparing for Trumpflation

SINGAPORE (Nov 24): With Donald Trump headed to the White House, Schroder’s Marcus Brookes now expects his presidential policies to pile on further price pressure, otherwise known as the ‘Trumpflation’ effect.

The head of multi-manager at Schroders foresaw the return of inflation a year ago, and has been helping the asset management company tweak its portfolio over the past year to reflect this view accordingly.

Central banks need to stop living in a fantasy world

SINGAPORE (Nov 7): Central banks have been largely ineffective in creating credit within their economies despite repeated efforts at tweaking their monetary policy, and Huw van Steenis, the Global Head of Strategy at Schroders, thinks he might know the reason for it.

At a London School of Economics conference to celebrate Charles Goodhart’s contributions to economics, Steenis proposed a new economic law in honour of Goodhart’s 80th birthday, “When central banks’ policies overlook financial frictions in the transmission mechanism, they will lose traction.”

The crisis mindset: how investors paralysed by fear could be missing opportunities

The "sentiment cycle" suggests why so many investors miss out on market opportunities. Fund manager Malcolm Melville explains why we may now be in the most positive phase.

5 ways to re-energise your portfolio

SINGAPORE (Aug 17): With all the global hype surrounding American electric car maker Tesla this year, it’s no wonder industrial and automotive players are beginning to foresee a long-term race to build vehicles of the future.

Schroders anticipates the growing prominence of electric vehicles in the auto production mix as demand increases and electric car prices decline in the years to come.

7 things we could learn from Japan’s business environment

SINGAPORE (July 15): As many as 3,146 companies in Japan were founded over two centuries ago – with the history of some even dating back to over a thousand years ago.

Could this apparent aptitude for corporate longevity tell us anything about the sustainability of Japanese business models now, and in the future?

Yes and no, says Nathan Gibbs, a Japanese equities client portfolio manager at Schroders.

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