As you will all have heard by now Donald Trump is now US President Elect thanks to his unexpected win in yesterday’s election. So far the market reaction has been fairly predictable although conditions have improved a little compared to a couple of hours ago. Below I’ve provided a market update and our initial thoughts on the implications of the result.
OPEC production cut puts a floor under oil prices
At last night’s sideline OPEC meeting the cartel agreed a framework for cutting production in 2017. The production cut is the first since 2008 and could lower global supply by around 1 million barrels per day in 2017 and beyond. The specific country production quotas will be agreed at its November 30th meeting.
Fed/Bank of Japan meetings keep investors on an even keel
This week’s meetings of the Bank of Japan and the US Federal Reserve were always going to be closely watched following some investor jitters post the ECB meeting earlier this month where the Bank didn't extend its Quantitative Easing (QE) policy. Both meetings this week reinforced our long held view that we’re in a 'lower for longer' interest rate cycle and that even where there are rate hikes (such as in the US) they will be very gradual.
Investment the key driver of more modest second quarter growth in Ireland
This morning the Central Statistics Office (CSO) released the Irish National Accounts for the second quarter of 2016. The accounts showed that real GDP and GNP both grew by 0.6% over the quarter. Over the past twelve months GDP and GNP grew by 4.1% and 4.6% (see table 1).
Absolute Return Funds - The Ultimate in Active Management?
The role of absolute return funds in an investor’s portfolio should be to capture some market upside while protecting investors from episodes of significant downside. Contrary to popular belief, absolute return funds and even hedge funds are generally not designed to outperform in equity bull markets and are unlikely to do so.