Central Banks face a difficult predicament in trying to reduce inflationary pressures in their respective economies whilst also alleviating the probability that these economies do not face a prolonged period of negative GDP growth which could lead to a recession.
Bonds have traditionally been a reliable asset class in periods of market stress. In the current economic environment, bonds have been falling alongside equities and this blog takes a deep dive at why this is happening and do bonds still offer protection to your portfolio.
As the world is now embracing a low-carbon economy at a record pace, this blog examines how this could impact fossil fuel investments.
This blog overviews the tried and tested strategy of pound cost averaging. This strategy, combined with self-discipline and sticking to your investment plan can be beneficial for investing – even when markets are volatile.
While the situation between Russia and Ukraine remains extremely delicate and evolving at a daily rate, in this blog we give an overview of how the situation is impacting ebi portfolios and the economic impact on the market.
Over the past few months, headlines have been dominated by talks of inflation and stagflation.
EBI Portfolios is delighted to announce the appointment of Samuel Adams (CEO, Vert Asset Management) as a Non-Executive Director, joining the company’s board in September 2020. Sam has a wealth of experience as a senior manager in the financial services sector, and particular expertise in ESG investments and presenting ESG solutions to advisers and investors alike.“We’re very excited to have Sam join the team at EBI” Craig Burgess, CEO, EBI Portfolios, “Our views on passive, factor-based and ESG investing are aligned, and we look forward to bringing Sam’s experience in this space back to the UK market.”“ESG investing is becoming a larger and larger part of our proposition at EBI, and Sam will be joining the team to aid in increasing the ESG elements of our portfolios, as well as liaising with our network of advisers; sharing best practice and advise on how to present an ESG solution to investors.”Previously, Sam started Dimensional’s Financial Advisor business in the UK & Eur…
[Note that this analysis will concentrate primarily on US Indices, as there is more available data, but it will inevitably apply to other markets as they tend to mimic the returns etc. of US markets].
Critiques of Passive investing According to Bank of America Merrill Lynch, passive investing now accounts for 45% of all US assets (up from 25% a decade ago), with equity passive funds amounting to c.$3 trillion at present.Our attention has recently been drawn to another high-profile investor, Michael Burry (article here), who believes that Passive investing is responsible for creating (another) bubble in asset prices, comparing it to the sub-prime mortgage bubble in that “price-setting in that market was not done by fundamental security-level analysis, but by massive capital flows based on Nobel-approved models of risk that proved to be untrue.” He follows other notable investors, s…
April was supposed to be the month that the underperforming Value and Small cap factor premiums rebounded from their painful COVID-19 crash. After all, that is exactly what famously happened after the TMT crash in 2000 when traditional Value stocks enjoyed a recovery after long periods of underperformance (1). And sure enough global small cap stocks registered an impressive bounce during April, rising 23.9% from lows in March against a 17.2% move in the overall market. That’s something, perhaps not overwhelming, whilst Value just tailed the market benchmark. Most Value investors, and many (but not all) Small cap investors, know that they have to take a long view and swim against the tide of take-downs and negative opinion which can at times seem overwhelming.
