Perspectives
Interest rate levels affect equity levels
September, 2017
Equity valuations are impacted by many factors: earnings, cashflows and market sentiment to name but a few. Interest rates play in important part in current prevailing equity valuations and we believe investors should be focussed on these at present because if low interest rates drive higher current equity valuations, then higher interest rates will inevitably […]
Home from the Holidays
September, 2017
As Britain returns from the holiday break this year, followed inevitably by the sound of credit card bills falling onto the doormat, there may be a greater feeling of dread than usual. If you have travelled to the US or Europe, you will be acutely aware that not only has the “pound in your pocket” […]
Hedging comes at a cost
August, 2017
Since being re-elected in December 2012, Shinzo Abe, the Japanese Prime Minister, has presided over an economic policy aimed at restoring growth to help the country repay its large government debts that have accumulated over recent decades. This policy has become known as Abenomics as it has focused on three distinct ‘arrows’: monetary reflation, fiscal […]
Focus on Your Objective
August, 2017
Many in our industry focus on volatility of returns rather than the returns themselves and this can have a detrimental effect on client outcomes. Every investor should assess their risk appetite and their capacity for loss before making an investment. This helps them understand the risk they are willing to tolerate when trying to achieve […]
Ten Years on
August, 2017
A lot is being written this month about the tenth anniversary of the financial crisis. In August 2007 the UK stock market started a period of volatility. Banks began to stop lending to each other due to market fears over exposure to potential losses on high-risk US mortgages. The credit crunch began in earnest. We […]
Beware Low Volatility
August, 2017
Market volatility has fallen to very low levels over the past few years and this creates a conundrum for investors. Low volatility levels indicate that you can take on more risky exposure (to generate higher returns) for your risk budget. With volatility so low, should they embrace higher exposure to risk assets or, as we […]
How can funds earn more than the people who invest in them?
July, 2017
Investors are taught that markets are unpredictable, that past performance is no guide to the future! Why then is past performance used by the average investor when making fund selection decisions? The following example is rather old, but holds true today and provides an insight into why the Tacit thought process steers clear of forecasts. […]
If only we all had better memories
July, 2017
Georges Santayana once wrote that that those “who fail to remember the past are condemned to repeat it.” Many writers and financial commentators from J K Galbraith to Charles Kindleburger and Warren Buffett have noted how short the financial memory can be. Investors routinely ignore historic lessons surrounding leverage, financial complexity, sales over profits, clicks […]
Tacit investment management hires Stephens
July, 2017
Tacit Investment Management has hired experienced wealth manager Leigh Stephens to strengthen relationships within its growing adviser business. Stephens, who has thirty years’ experience in wealth management, with senior roles at Saunderson House, Close Brothers and Deutsche Bank, will take the role of Head of Strategic Relationships. Tacit founding Director Roy Swain said: “We know […]
Brexit and prosperity
July, 2017
Michael Caine, the famous British actor, made a rare excursion into the political economy of Brexit recently with his dramatic assertion that he “Would rather be a poor master than a rich servant.” No prizes for guessing which side of the debate he is on but it’s interesting that that he captured the popular British […]