For the small number of athletes that make it, the numerous years of self-improvement provide a sense of personal return most of us can’t even fathom. Yet, through an economic lens, when one considers and compares the returns, the story tends to be mixed. The results of the Olympics from this point of view are, therefore, like the events themselves - unpredictable, and only known ‘after the race is run’.
As a general rule, museums collect art with little concern about financial value but rather approach each purchase with the question: what meaningful role can this work of art play in people’s lives? By contrast, gallerists, dealers and auctioneers allocate value first, worked out by a number of different metrics, not just its importance.
The Bank of England of England base rate has fallen to a historic low of 0.25%. We review the background for the Bank’s move and consider the effect rate cut and other stimulus measures will have on investments.
The Olympic Games will shine a spotlight on Brazil for the next few weeks. But while the media glare will soon move onto other events, there are reasons for investors to remain focused on the country – and other emerging markets – for the longer term.
The ramifications of the vote to leave the EU will be felt for a very long time to come. We believe that staying invested is important as history has shown that if you miss the bounces, you can dramatically lose out in the long term.
Despite UK commercial property yields being at cyclical lows, they still offer an attractive premium over bond yields. We see strong rental growth in 2016 helping to drive capital values, while property income remains relatively attractive.