Go global to make great returns
“Corporate profits are beating forecasts and margins, despite inflationary pressure,are still climbing”
“The Bankers Investment Trust is more value-orientated than the rest of the sector and deserves the benefit of the doubt”
Plenty of pundits insist that stockmarkets are overvalued and heading for a crash. Setbacks or sudden shocks, as in early 2020, are always possible, but investors have learned to ride these out. What would be much more worrying is a sustained bear market from which it takes years to recover. But how likely is that?
Persistent inflation is likely to push up both interest rates and bond yields, but that is well known and should be discounted in share prices, unless we are heading for the conditions of the 1970s without the build-up of the 1960s. Recovery is turning into strong growth and profits are easily beating forecasts with profit margins, despite inflationary pressure, still rising.
Plenty of markets – the UK, Japan, Latin America – look good value and small caps are attractive relative to blue
