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Tricks

Paul Markham on upcoming investment challenges

Paul Markham is an elite manager responsible for more than $4bn worth of assets at Newton Investment Management — one of eight investment firms under the Bank of New York Mellon umbrella and cumulatively the seventh-largest asset manager in the world with $2trn of assets under management.

As one of the most experienced global equity managers at the firm, Markham is ideally placed to provide an outlook on the effect that the global coronavirus pandemic has had on businesses and on investing.

Markham foresees some significant challenges.

“The basic ability to squeeze all of the income you can out of an asset, in many cases, is going to be very challenged,” Markham told Opto Sessions.

Markham pointed to a number of factors that will have an impact, such as the manner in which people return to offices and the change that this might have on the dynamics of real estate. The banking sector will also be heavily impacted.

“When it comes to actual yields in regards to the yields on securities and equities, in particular, they’re challenged as well because we’ve got big sectors such as the banks that haven’t been told by their regulators they must crimp or suspend the dividends which they’re paying,” Markham explained.

As a result, this will have ramifications on sectors that perform well in the markets.

“If that carries on for a long period of time, the investment cases in some of those areas can become pretty tough for many investors to understand,” Markham explained. “On many levels, yield of assets is going to be a big, big question over the next couple of years”.

 

For more on Markham’s perspective on fundamental shifts in business and his strategy for investing during this time, listen to the full episode below.

 

 

Or for more ways to listen:

 

Listen to the full interview and explore our past episodes on Opto Sessions.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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