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A compilation of recent market and economic information gleaned from comments made by chairmen and investment managers of investment firms – read it and make up your own mind. Remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned.

Gathering

While inflation concerns are still very much on everyone’s mind, investors can’t help but feel a little more optimistic after the misery of this period last year. Demand continues to rebound and vaccination programs continue. 29.4% of the world’s population has now received at least one dose of a COVID-19 vaccine, while 15% are fully vaccinated according to Our World in Data. In the UK, savers have received a much needed boost in confidence.

Global

Inflation remains a concern, but optimism is contagious

James Dow and Toby Ross, directors of Scottish American, are reflecting on the idea that a rapid recovery in demand could lead to a sustained surge in inflation, which is already evident when looking at building material shortages.

Paul Niven of F&C, however, notes that policymakers and some investors believe that current increases in inflation are likely to be transient and that price pressures will dissipate in the coming quarters.

Gregor Stewart, Chairman of Alliance Trust, says pandemic crisis is far from over and therefore focuses on stock picking macro factors remain more important than ever.

Supply issues are another growing concern for global economies

Brunner’s Matthew Tillett points out that companies with highly cyclical earnings profiles continued to make the biggest gains, in part thanks to a massive jump in earnings expectations from depressed 2020 levels.

Herald President Tom Black says supply chain issues are our biggest concern in the near term. Potential oversupply for this reason can now also flatter demand in the short term.

UK

Right DebentureThe managers of, James Henderson and Laura Foll, believe the relationship between earnings increases and stock price performance is strong and has been a more powerful factor in the minds of investors than growing concerns about the recovery of the market. ‘inflation.

Angus Gordon Lennox, president of Aberforth Split Level Income, says there is genuine confidence in the rebound in economic activity as investment and consumption increase globally and that optimism is reflected in the rise share prices and an increase in the frequency of merger and acquisition transactions.

Improving sentiment was good news for stock prices and mergers and acquisitions

Aberforth Smaller Companies executives point to ample evidence of inflationary pressures such as rising consumer prices and comments from various companies.

BlackRock Throgmorton President Christopher Samuel believes the pandemic will have far-reaching consequences for many years to come and will change the way businesses operate and the way people interact.

SVM UK Emerging Director notes that a flow of new business models is disrupting established businesses through new services or innovative technologies.

Success of UK vaccination program has boosted confidence in savers

Douglas McDougall, Chairman of the Independent Investment Trust, agrees that the most immediate threat to markets is surprisingly high inflation, but in the longer term, the global debt problem resulting from the financial crisis and pandemic poses a threat to the markets. threat to the stability of the global financial system.

The managers of Artemis Alpha believe that the rapid roll-out of immunization programs in many developed countries has improved sentiment, creating expectations for a strong recovery as excess savings begin to flow back into the economy.

Miton UK Microcap Chairman Andy Pomfret says recent trends match those of previous decades, when major UK indices outperformed the US stock market for an extended period and UK microcaps stock prices outperformed significantly.

Flexible investment

Nick Greenwood and Charlotte Cuthbertson, managers of Miton Global Opportunities, appreciated the sugar rush triggered by the economic recovery, but say all eyes are now on whether inflationary trends are transitory and whether central banks are willing to remove the punch bowl.

Despite a strong recovery, all eyes are on inflation

JPMorgan Global Core Real Assets Manager says the way we work, live and consume energy is changing and this is impacting the investment landscape and presenting exciting new opportunities in the real asset market.

Renewable energy infrastructure

Shonaid Jemmett-Page, chairman of Greencoat UK Wind, is encouraged by the Prime Minister’s ten-point plan for the goal of net zero emissions by 2050.

Renewable energy sector undergoes major changes as economies aim for net zero emissions

Gore Street Energy Storage officials highlight changes in the regulation of the renewable energy market and what they will mean for the future of the industry.

Other

We have also included comments on Japan Atlantis Japan Growth; Asia Pacific Invesco Asia and Aberdeen New Dawn; biotechnology and health from BB Santé; raw materials and natural resources from BlackRock Energy & Resources Income and Geiger Counter; Technology and media of Polar Capital Technology and Allianz Technology; finances of Polar Capital Global Financials; debt of Henderson Diversified Income and TwentyFour Income; rental Amedeo Air Four Plus; Infrastructure Sequoia Economic Infrastructure Income; infrastructure titles Premier Miton Global Renewables; environmental of Jupiter Vert; royalty fee by Hipgnosis Songs and goods by SEGRO, Primary Health Properties, Custodian REIT, BMO Real Estate Investments, Unite Group, Capital & Counties and Schroder European Real Estate.

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August economic and political overview