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Telegraph Article On Investment Strategy

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Fascinating article on investment strategy in the Telegraph:


Market participants have no choice but to carefully assess the consequences of what is likely to be an historic, multi-year rise in government involvement. They should concentrate their buying in sectors receiving sustainable government support, and do so by positioning their purchases high up in the capital structure. They should remember that governments will need to fund their involvement and will likely issue too many bonds over time and cause medium-term inflation and currency depreciation.


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Great article.

Going forward, investors should keep a careful watch on four realities that are consequential for the configuration of risk-adjusted returns in various markets.

First, global economic activity has fallen off a cliff since September, and will continue to do so in the next few months regardless of what governments do. Second, many investors have experienced large portfolio losses that will erode their risk appetite for some time.

Third, notwithstanding the headline-grabbing stories of 2008, we are just at the beginning of a messy multi-year phase of institutional change in the financial markets that will ripple through many other sectors and companies. Fourth, driven by a genuine desire to compensate for cascading market failures, governments will intensify their involvement in markets through "unorthodox measures" that have both intended and unintended consequences.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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