Investment Insights

As inflation starts to re-emerge, again rippling through economies worldwide, investors are seeking assets that can protect their wealth from eroding purchasing power. Traditionally, gold has been the go-to inflation hedge, celebrated for its stability and intrinsic value. However, the rise of cryptocurrencies, particularly Bitcoin, has introduced a new contender in this arena. 

While many people associate Sharia with traditional Muslim laws, it is now a significant contributor to the world of finance. In Southeast Asia, countries such as Malaysia and Indonesia are central to Sharia-compliant investment strategies. However, this has now become something of a global phenomenon and one that institutional investors are acutely aware of.

During the pandemic, there was uncertainty and confusion in equal measures. As we know, markets fear uncertainty the most; they can recalibrate and re-evaluate any bad news, but uncertainty tends to bring out the greatest fears of investors. This impacts not only equity prices but also corporate bonds and distressed debt, which can often be oversold and mispriced.

The topic of risk management in large-scale trade execution can be relatively complex, but it can be simplified with planning. Risk management plays a pivotal role in safeguarding portfolios from significant losses and aligning investments with your attitude to risk. Looking deeper at the issues, portfolio rebalancing is not just a one-off action but something to consider on an ongoing basis.

Whether or not you are a high-net-worth individual, it’s still important to structure your portfolio correctly while appreciating risk management. Obviously, in often volatile markets, this can be difficult to achieve with risk management used as a means of protecting your wealth while also maximising the upside.

In recent weeks, you may have seen mention of the “Trump Bet”, which first emerged in 2016 in the run-up to the last US Presidential election. It revolves around market expectations in the event that former President Donald Trump was to be re-elected. Since Joe Biden’s withdrawal, appetite for the so-called “Trump Bet” has reduced, but it is still an interesting concept. So, how does it work?

As unemployment data from the US disappointed the market, putting investors into a tailspin, all eyes moved to crypto. Seen as a hedge against inflation and recession, would investors switch their equity funds as a form of protection?

As companies and institutions continue to recover from the weekend global IT outage, very few people saw the source of such an issue. Many have been highlighting our overdependence on IT, most notably the Internet, but apparently one simple rogue Windows update brought the worldwide system (or most of it) to its knees.

As the term suggests, quantitative finance involves the use of mathematical models, statistics, and computational algorithms to analyse financial markets and securities. It is primarily used to identify trading opportunities, optimise portfolios, and manage risk and price derivatives.

Before we discuss low latency execution in more detail, it’s important to understand the term latency. In its most basic form, latency is the delay between a user passing an instruction and that instruction reaching its destination before being executed. In the world of cutting-edge investment and trading, every millisecond helps.