1. Trumped up
David Coombs, head of multi-asset portfolios at Rathbones, cited Donald Trump’s presidential campaign as a prominant theme.
“Donald Trump’s extreme views have garnered him condemnation and support, in equal measure.
“He started the race as the court jester, but has the electorate become the joke here?” he said, suggesting the intolerance around immigration is not confined to Mr Trump.
Mr Coombs said the rise of more extreme politics is a real threat to the stability of economies, adding: “After years of centrist ideologies, radical policies are now fomenting at both ends of the political spectrum.”
2. Powder-puff policy
Sheldon MacDonald, senior investment manager at Architas, said the most recent moves by central bankers have been largely ineffectual.
“After seven years of unconventional policy aimed at saving the global banking system, central bankers are still cranking the same growth levers, namely quantitative easing and low or negative interest rates.”
Mr MacDonald said the central bank chiefs “can proclaim their willingness to act with no limits to boost inflation as loudly as they like”, but said the markets “are no longer listening to those perceived to be ‘crying wolf’”.
“As such now might be the time we need governments to step in with strong fiscal policy measures instead.”
3. China sneezing
Ben Lofthouse, fund manager of Henderson International Income trust, said the health of the Chinese economy is a “major concern” for investors, particularly the impact this might have on its currency.
“Chinese assets are not widely held by investors, but Chinese economic growth is one of the major drivers of global growth rates and it is the major customer for commodity suppliers.
“So certainly if China sneezes, the rest of the world is likely to feel the impact, and perhaps even get a cold.”
4. FTSE 100
Nick Peters, portfolio manager at Fidelity Solutions, said one investment theme competing for influence with Brexit is the FTSE 100 stocks, which he suggested will prove longer lasting.
“We are seeing a rotation not so much from growth to value companies, but within the value sector itself.
“So while oil companies and commodity exporters were favoured value plays in anticipation of higher commodity prices, we’re now seeing areas like banks becoming favoured value stocks.
“We have governments appointing bureaucrats to set the price of money and to influence the supply of it.” Jason Pidcock5. Efficient energy
Richard Stone, The Share Centre’s chief executive, said energy and natural resources are broader investment themes to consider.
He said: “Concerns about climate change remain, and with the increased capabilities of mobile technologies, mobility of populations and changing working patterns, we are demanding more and more from our devices and machines.
“Companies who can lead the technological change will benefit from these ongoing trends.
“It is also an open question as to whether any of the energy giants today can transform themselves to succeed in this new world.”
6. Monetary communism
Jason Pidcock, fund manager at Jupiter Asset Management claimed nearly every country around the world is operating a communist monetary policy, causing inefficiencies in the global financial system.
He said: “By this I mean we have governments appointing bureaucrats to set the price of money and to influence the supply of it.”
“If this happened with almost any product, we would think it ridiculous. That it happens with money is absurd but somehow the politicians have obscured this fact because it suits them to be able to finance their profligate spending habits with no limits.”
Mr Pidcock described the ‘lender of last resort’ concept as an “abomination” which substantially increases risk-taking, particularly by governments whom he said have “no shame in spending other people’s money beyond what is prudent, and borrowing extravagantly to spend even more”.
katherine.denham@ft.com
