The investing world is currently going through a curious phase. On one hand, the rally in the US equity markets continues undiminished, fuelled by expectations of a pro-business US administration enabling business growth. In theory, this should in turn lead to higher interest rate expectations and an upward shift in bond yield curves; however, notwithstanding the overnight price moves, yields in fixed income and corporate bond markets remain quite compressed, seemingly arguing for a “lower for longer” interest rate environment. Such mixed and continually changing signals therefore adds uncertainty and unpredictability to even the most fundamentally sound investment thesis, with the effects further amplified for emerging markets investors.
Author: ADM Capital
We believe that the social and environmental aspects of businesses ultimately influence returns. As such, we fully expect that our investments, whilst producing superior returns, should be based on ecologically sound principles.