Despite the government’s attempts to extricate the UK from the EU membership, as investors we remain inextricably linked to our continental neighbours.
Jittery investors are rushing to buy gold and government bonds as the threat of a global recession sparked by Trump and his trade wars intensifies. Such is the fear that according to Deutsche Bank, investors have apparently invested US$15trn (25% of the total bond market) in negative-yielding government bonds — a number that has tripled since October 2018.
Proponents of the passive, index-tracking approach to equity investing often make their case by underlining the efficiency of stock markets. This is especially true of the US, where research and the speed with which information is translated into price movements can make stock selection a pointless exercise.
