Invesco

High cash levels could contribute to increased consumer confidence and corporate earnings. Margin pressure and stretched multiples may be a headwind, alongside shipping costs and supply chain challenges. Equities look more attractive to us than cash and fixed income over the long-term.

Invesco’s Randall Dishmon talks about what structural trends, he believes will create sustainable growth for global equities in the years ahead.

With a new year fast approaching, we sat down with the Henley Fixed Interest Team to hear their views for 2022. What are they most excited about? What challenges are on the horizon? And what can we expect from markets in the coming months?

Asian and EM equity markets have struggled for much of 2021, with exports growth slowing after a strong recovery and China-related concerns denting investor sentiment. The slow rollout of vaccination programmes in many emerging markets has slowed the recovery, particularly as new Covid variants emerged. Yet, conditions have started to normalise, and looking forward we find reasons to be optimistic.

Supply chain disruptions, rising wages and upward moves in commodity and energy prices are leading to short-term inflationary pressure – and a debate as to how transitory or sticky these inflationary forces are.

As we head into the final months of the year, there could be more trouble ahead for corporate margins. What impact could post-covid reopening and supply chain costs have and what other obstacles could disturb profits?

The UK has experienced a high level of headline inflation this year. But is this a short-term consequence of the economic bounce-back post-covid, or the start of a longer-term pick-up in price pressure?

Stakeholders at the government, institution and investor level are increasingly looking at ESG in a more granular way – seeking information on many other criteria considered fundamental to improving the planet, business practices and wider society.

Invesco recently surveyed 161 financial advisers and 201 advised investors to get their views on ESG and found a considerable and widespread appetite for these strategies.

Having spent nearly 18 months looking through the economic implications of a global pandemic, the market is now becoming fixated with the growth outlook, even as regions optimistically – and with some trepidation – ease restrictions and return us to some normality.

Inflation trends have been a key focus for the first half of 2021. Find out why Clive Emery (Multi Asset Fund Manager) thinks it’s more about growth.

As the appetite for ESG investing grows, investors are becoming aware of some of the trade-offs that sometimes have to be made. Our panellists discuss why investors may need to take a more nuanced approach when investing sustainably.

We cannot escape the fact that the market is beginning to look expensive at the headline level. Fortunately, we do not have to buy the index. As active investors, with a contrarian approach we are well positioned to take advantage of the valuation disparity across sectors.

E-commerce has been like a massive wave that has washed over much of the traditional retail footprint in the US and Europe. Globally, e-commerce retail sales are projected to hit $6.5 trillion in 2024.

We believe the recovery following the Covid-19 pandemic will be stronger than, for example, the recovery following the GFC, and stronger than consensus forecasts. However, we do not sign up to the theory that this will be driven by excess savings.

Markets have performed well since March 2020, but we believe the wide valuation discrepancies that exist between sectors is not justifiable given the breadth of earnings recovery now being seen.

The Invesco Tactical Bond Fund (UK) is our investment philosophy distilled into a single fund. It’s designed to allow us to align risk to reward, both the level and the type, across bond markets as the opportunity set changes. In that way we seek attractive risk-adjusted returns and to achieve income and capital growth over time.

A friend of mine recently described his “self-inflicted” investment experience as like being on the ocean in a storm bouncing left, right, up down…from growth to value to international to domestic…advice coming from all sides…all of it conflicting with other reasonable-sounding advice. Caught in a storm of labels, his results were terrible, and his head was spinning trying to reconcile all of the different investment styles out there. Sound familiar?