Understanding the investment challenges in today’s market
27th August 2020
At RobMac, we need to constantly keep up to date with the investment challenges, especially in today’s uncertain market due to the global pandemic. We need to read and interpret the research that is available to inform our investment decisions on behalf of our clients. Sometimes that research can include opinions that question the majority view which we still have to take into consideration.
Andrew Hannay, director of RobMac said that, “’Going with the flow’ as an investment strategy is the easy option until something goes wrong. We must put checks and balances in place to make sure that the investments that we make on behalf of our clients are rigorous and tested on a regular basis. In addition, we need to look for any warning signs of businesses that are struggling and where we have an investment exposure. It requires constant vigilance, keeping up to date with the financial news and challenging research.”
A recent series of articles by Barry Norris of Argonaut Capital this month is one such example. Over 3 in depth pieces he first questions “The hocus science behind lockdown”, the second is entitled “The vaccine swindle” and the final piece is “The biggest fraud – the investment implications”.
Barry Norris acknowledges that some of his views are a direct contradiction with the current scientific thinking and many governments’ strategies in fighting the pandemic, But he successfully argues that one size does not fit all and as fund managers they have to identify the winners and losers in such a scenario.
He argues that much of the economic support that is being given across the board does not take into consideration the life cycle of organisations. For example, helping to prop up sunset industries only prolongs the inevitable whilst doing more damage to customers, suppliers, and investors along the way. Equally he argues that we must be acutely cautious around some of the fashionable sunrise industries and cites the collapse of Wirecard and NMC due to hype, and ultimately fraud as examples.
Andrew says “It’s what makes this job so interesting. We must take an evidence-based view on the right investment decisions on behalf of our clients. That can be both fascinating and onerous at the same time, but I think it’s important that RobMac don’t always just accept ‘fashionable’ investment strategies but explore the alternatives too.”
If you would like to read the Barry Norris’s articles in full please follow the links below:
Robson Macintosh & Company Ltd.
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Tel: 0131 226 6700 Email: firstname.lastname@example.org
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