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Articles tagged with: global markets

Q3 2020 Market Commentary

Q3 2020 Market Commentary

USA elections, 2021 Outlook, ESG Portfolios and much more

It has been surreal for all of us to experience this year’s holidays with limited family gatherings and shul services. We hope that you managed to make the most of the challenging situation. Israel's virus position is indeed precarious and it is clear this is not a short-term problem as we initially hoped. We remain vigilant in terms of our portfolio positioning and risk management. We do believe that there are tough economic times ahead; however, we do not believe we will see another market panic scenario as we saw in March 2020. In the following commentary we will address the global market YTD and outlook, upcoming elections, ESG investment and other interesting updates and developments.

2020 Half Year Review

2020 Half Year Review

COVID19, USA Elections, Economic Scenarios, and Investment Opportunities

To merely say "these are challenging and complex times" seems an excessively simple comment for the size and multifaceted nature of the challenges ahead of us all. In this half-year review, I will try to summarize our views to help you navigate the way forward. As I write to you, the Corona virus has directly affected too many friends. Once you know someone who testifies how powerful and aggressive this virus can be, it makes you stop and reflect regardless of how many times you have read about it or heard of asymptomatic cases. One close family member or friend in hospital is infinitely more powerful than millions of nameless statistics from around the world. So, to all the readers who have had that direct impact, we share your anxiety and fear and send you all the strength we can.

2019 Markets Review

2019 Markets Review

2019 summary & 2020 predictions

2019 was a vindication year for the traditional asset management industry and asset allocators like us. Many skeptics sat on the sidelines in cash and missed the best year for returns we have had in a very long time. Our clients enjoyed excellent returns in both absolute and relative basis.

While 2017 was low positive and 2018 was negative, 2019 was very positive and brought the three-year returns comfortably into the annual targeted return range. This is the nature of the beast - market returns simply do not go in straight lines.

Our eyes now turn to 2020. As always, the crystal ball has its limitations and across our team we have slightly differing views for 2020. However, the consensus view is to remain faithful to our asset allocation principles.

2019 Half Year Review

2019 Half Year Review

2019 half year summary & predictions

I have just returned from spending two days with Pimco in London at their annual conference for investors. Pimco is one of the largest bond specialist firms in the world with an incredible depth of resources. The audience consisted of investment professionals from Europe, and it was apparent that everyone had come to hear not only Pimco’s macro-economic view, but also to clarify just how concerned we, as investors,  should be and what changes we should be making, if any, in the current circumstances.

It was an exceptionally high-level discussion and I will try to share some of the messages with you below. An interesting aspect of the investment world is how different personalities gravitate towards different asset classes. Optimists gravitate towards equities, pessimists to bonds and those with perhaps a tad too much hubris towards hedge funds. Pimco is a firm specializing in bonds. They ooze caution through the air vents. So whilst they were professionally non-committal about whether we are heading towards a cyclical change and/or recession, or not, they did an excellent job trying to identify whether there are any relevant signals now. The bottom line is no panic signals but elevated levels of caution looking into 2020.