The craft of investing

The tension is palpable and, as a result, investors aim to anticipate the short-term performance of equity and bond markets.

Equity markets continue to show strength with several indices closing near record highs.

EDM’s stance is one of trust. The word sums up our position as we remember that, despite all questions and misgivings, the economy will be strong for reasonably foreseeable period of time.

We have always maintained that our management approach focuses on the long term. This in no way implies that we are insensitive to changes in valuation or circumstance.

The best risk management begins with knowing what we are investing in and why.

Consumer confidence has improved and with it consumption has begun to soar.

During this month, we have analyzed the main market signals that reflect the progress in the economic recovery.

Despite the uncertainty, the rapid progress of vaccination in many countries has a positive impact on economic forecasts.

This month, we have analyzed how the decrease in health risk due to the advance of vaccination has been reflected in the behavior of the markets.

Although the pandemic year behind us was a tough test in every respect, it was also a year of particularly intense learning.

At the close of Q1 2021, the spread of COVID-19 continues to influence our lives, economic progress, and financial market trends. One year after the initial imposition of restrictions due to the virus, we are reasonably confident of economic recovery in H2 2021, as activity in the hardest hit sectors gradually normalises.

Improved results, in terms of company fundamentals (such as profit growth), are one of the key drivers of long-term profitability when investing in equities.

In its wake, 2020 leaves a string of experiences and challenges we will not soon forget, but it is often in trying times that we are encouraged to grow and expand our horizons.