Bilal Hafeez
US Speaker of Nancy Pelosi’s visit to Taiwan dominated much of the political headlines last week. With China continuing to conduct new live-fire exercises in the Yellow Sea around Taiwan...
John Tierney
The big story so far is a slowdown in advertising across every company that depends on it. Consumer-oriented companies are mixed, but few expect serious weakness in 2H.
Ben Ford
Preservation of capital is key; Bilal leaves his asset allocation unchanged: overweight cash, neutral commodities and crypto, and underweight equities and bonds.
Bilal Hafeez
Markets took the 75bps hike from the Fed as dovish, although Dominique disagreed. She thinks the market is mistaken on both the Fed reaction function and the direction of inflation.
John Tierney
More energy companies – big and small – report this week, with most probably hitting record revenue and earnings. But will they boost production?
John Tierney
The FTSE 100 has been the surprise outperformer in 2022, leading the S&P 500, the Stoxx Europe 600 and the Stoxx Euro 50 in 2021 by more than 10 percentage points.
Bilal Hafeez
Markets were bid across DM equities and rates last week, albeit with underperformance in European periphery assets.
John Tierney
So far, 14% of the Russell 1000 universe have reported earnings, posting an aggregate EPS beat of 4.1%. The general tone has been good, but with some surprising contrasts...
Ben Ford
Remaining overweight US homebuilders, but wary of headwinds. We still see value in the housing sector due to a supply-demand imbalance but outline risks from Fed tightening.
Bilal Hafeez
Had the pleasure of appearing on Bloomberg TV yesterday to answer various quick-fire questions by Guy Johnson and Alix Steel.
John Tierney
Apart from Netflix (NFLX) The other big names to watch this week are Tesla (TSLR) and Twitter (TWTR) (Elon Musk news); and energy services companies Halliburton (HAL)...
Bilal Hafeez
Markets turned more hawkish on the Norges, Riksbank, and RBNZ (Chart 1). However, we think there’s room for disappointment down under.
Henry Occleston
European stocks will face substantial risk events this week from Russian gas supply, ECB policy, and Italian politics.
Bilal Hafeez
Had the pleasure of appearing on Bloomberg TV yesterday to answer various quick-fire questions by Guy Johnson and Alix Steel.
John Tierney
More companies are running into headwinds even if 2Q earnings were a beat in most cases. Weak investment banking results at two big banks shows that...
John Tierney
With the S&P 500 down around 20% from its recent high, we are in a bear market. We offer a framework to assess what stage it is in and what likely comes next.
John Tierney
2Q earnings season kicks off this week. Earnings should be mostly good, but we look for more mixed messages across companies, and possibly more downside shocks.
Bilal Hafeez
US equities staged a bounce. The largest moves were in tech stocks with the NASDAQ (+1.8 std-devs) now up +9.3% from the June -lows...
Ben Ford
Neutral commodities. Bilal’s latest Asset Allocation sees market volatility and recession fears limiting near-term gains for commodities, switching from overweight to neutral.
The benefits of equity investment include capital gains and dividends. However, we also see investment in stocks as a core part of a diversified strategy alongside other asset classes such as bonds and commodities. A global equities strategy offers geographical diversification, too.
It is possible to invest in equities at an individual level, but we gear most of our research around exchange traded funds (ETFs) as these provide better, more diversified exposure to macro trends instead of company fundamentals.
For most investors, equities offer an attractive way to grow wealth over the long term. There are many types of equities. And like any asset, they can be volatile in the short term. As a risk asset, they tend to suffer during downturns or periods of bearish sentiment. Yet equity investment generally offers higher returns than bonds and cash savings in the long term.
Your portfolio allocation to equities will largely depend upon your risk appetite. If you have an aggressive risk profile, you could potentially allocate 70%. With a moderate risk profile, you could consider an allocation of 50%, while a conservative risk profile might lead you to allocate 20%.
To gain an overview of our equity market investment views, read our latest Prime Trade Ideas report.
Equity investing is money that people invest in a company by buying shares of the company on the equity market. Investing in equities allows investors to own a share of the company and profit either via a rise in the company’s value (capital gains) or the generation of dividends.
Equities in the stock market are simply shares of a company that investors and other market participants buy or sell via exchanges. There is no difference in equities vs stocks.
The market value of equity is the total value of a company’s equities expressed in its denominated currency (I.e., dollars). It is also known as market capitalization, and it is calculated by multiplying the current price of a single stock by the total number of outstanding shares.
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