REPORTS, COMMENTS AND INSIGHTS
7 May 2021
Global growth revised up, risks evenly balanced
The global growth outlook continues to improve as COVID vaccines roll out and economies continue to return to some degree of normal. There are risks on the horizon but in the near-term they appear evenly balanced. The more medium-term risk centers on the inflation outlook and the extent to which higher inflation in the next few months is transitory, as central banks expect, or something more fundamental. We are keeping an open mind. For now, the "bull" narrative for equities remains intact, though we remain wary of further increase in bond yields.
17 March 2021
China Rebounding Strongly
Salt Economist Bevan Graham takes a look at some of the recent activity data out of China. The Chinese economy is recording spectacular growth rates off the low base of last year. That said, challenges remain as the leaderships seeks to reorient the economy towards greater consumption to create a more prosperous society.
2 March 2021
Bond yields have risen sharply over the last few weeks, reflecting the improving global growth outlook and rising inflation expectations. Central banks will be ok with this, but only up to a point. Share markets have been rattled, but equities will be ok if the rise in yields is slow and accompanied by a rise in earnings.
GLOBAL EQUITY OBSERVER
Effective engagement needs time. Expecting instant results from an engagement is as senseless as expecting instant alpha. Just as we look for steady and consistent growth in the companies we own, we value steady and consistent improvement in their approach to environmental, social and governance (ESG) issues over zigzagging in policy to satisfy short-term appetites and box-ticking.