RMG Investment Bulletins
Stewart Richardson appeared as the guest host on CNBC's Squawk Box programme on 13th June.
Please watch a brief video of Stewart discussing the tactical opportunity of US equities over European or EM as well as what could trip the equity market up the US Equity market in due course.
Stewart Richardson was the guest host on CNBC's Squawkbox programme on Tuesday.
A nice synopsis about RMG's views on equities can be seen on this video after a short discussion about London property. Essentially, markets are caught between the fundamental backdrop which should push prices down and Central Bank policy which will print money to keep markets up. Therefore, we may well see this volatile, range-bound market continue for some time.
On the show that Bob Diamond resigned, there was plenty of debate about banks and banking which gave Stewart the opportunity to express our view that the LIBOR investigation could give the politicians the opportunity to make some long term changes to banks. There is a need for better regulation not greater regulation and now is possibly the time to properly debate splitting the commercial activities from the investment banking. The need to protect depositors is paramount.
Over 2 hours in conversation, a wide range of topics were covered.
In the video below, Stewart discusses the earnings situation in Europe which have not been strong but the equity market seems to have divorced itself from this economy. The fact that the worst situation in Europe could have been averted in the short-term by the recent action from the ECB should not detract from slowing economy. In a "mea culpa", Stewart admitted RMG had been more cautious that necessary in January but, if our 2012 theme of "Buy the hysteria, Sell the Euphoria" is proved accurate, chasing equities nowcould be a mistake. RMG's 2012 strategy includes:
- "Buy the Hysteria, Sell the Euphoria"
- Event risk is high so tactical investment is essential
- The markets are too influenced by Central Banks and Politicians meaning a false trading range could remain until the elections in France, the U.S and Germany are over
In the second video, Stewart and Jim O'Neill, the Chairman of Goldman Sachs Asset Management, share thoughts on the global economy. Whilst both agreed there seem to be some encouraging detail in the US, Germany and China, there is a great deal of risk to the bullish case. The difference between the two lies in the investment time frame, with RMG focusing more on being nimble and active in markets to make positive returns.
Finally, we had the opportunity to describe the current general, position in the fund:
- Equities are range bound and currently at the top of the band so we are not chasing although we hold some high quality, dividend paying exposure
- We like Asian Government bonds in local currencies for the time being
- A long/short strategy in commodities with Oil and Agricultural attractive and most metals, unattractive
- Currencies with printing Central Banks to weaken (including Sterling)
- High quality corporate bonds look reasonable
- Government debt is too expensive
Stewart Richardson, CIO of RMG Wealth Management appeared as guest host on CNBC's Squawk Box Europe this morning.
This short video shows Stewart discussing the European situation and the chances for a rally in equities.
Later, the discussion turned to RMG's view that top quality companies with strong cash flow, steady dividends and global positioning will become more and more attractive as the year goes on. We remain on our guard to enter this investment.
- Where Goes the Pound?
- The End of an Era
- A Short Update on Our Equity Market View
- Some Extremes Held by Speculators Could Force Change
- Emerging Markets Challenging Our View of a Quiet Summer
- Has US Business Confidence Peaked?
- Central Banks
- Fixed Income
- FT Special Report
- General Update
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