Market Commentary September 2021

This year, saying “all-time highs” has started to sound like a broken record. Nothing has seemed to rattle the market much in 2021, with volatility at historic low levels. But after the summer lull, things to tend to get exciting again for investors in September in what is historically the worst-performing month of the year, with the FTSE 100 falling on average 1.2%. However, although the average return is bad for the month, about half of all Septembers have positive returns. The problem is that when the market does fall in this month, the falls can be very large.

Market Commentary August 2021

When investors are disillusioned with the stock market, they tend to sell any rallies. And when they are willing to let the good times roll, they tend to buy any dips. So far, 2021 has been a year of buying the dips. During any trading year, a major index such as the S&P 500 routinely will dance above and below its 20-day moving average trendline. A more-meaningful sign of a dip is when the index approaches or falls below its 50-day moving average, regarded as intermediate-term support. On 18th June, the index fell under its 50-day m/a at 4,166. Within one week, it had recovered and hit a new all-time high, and stocks have been sailing ever since. In fact, the market could probably use a dip, just so investors can buy it.

Gibraltar Chronicle July 2021

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Market Commentary July 2021

It is the eternal mystery – the days are long, but the years are short – and 2021 is no exception, with the months whizzing by and the mid-year already here. History will likely remember 2020 as the COVID-19 pandemic year, and 2021 as the recovery year. The health recovery is clearly underway, thanks to vaccines. Yet vaccination rates vary widely country by country. Politics is a factor, along with suspicion about treatments that were developed so quickly. The economic recovery is equally underway, aided by government stimulus. People-facing industries are seeing a return to something like the pre-pandemic normal, although a shortage of workers is slowing the process. And it’s not just workers that are in short supply; everything from semiconductors to bricks are subject to lengthening lead times, with subsequent price rises leading many to fret about the inflationary implications.

Trainee Operations Manager

We are seeking a Trainee Operations Manager to join our team. We operate in a fast-paced environment and candidates must be able to take on a heavy workload and work well under pressure. Starting salary £18,000 plus bonus (subject to company performance) & gym membership. Employee will be sponsored through the Chartered Institute for Securities & Investment’s Investment Operations Certificate, which consists of three exams. Salary will be increased by £2,000 for every examination passed. In addition, a non-contributory pension will be set up following two years of service (where 20% of total salary and bonus will be paid in for the first two years and each subsequent year). Thus, the effective minimum salary will be £28,800 following completion of the Investment Operations Certificate and two year’s service. Please email your CV to gam@gam.gi. We are not accepting enquiries from recruitment agencies on this occasion.

Gibraltar Chronicle June 2021

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Market Commentary June 2021

Stocks have been marching to a steady drumbeat of good news, reflecting vaccine distribution, general reopening optimism, and plenty of government stimulus to get a creaky economy back in gear. The parade stopped cold for a moment, however, before lurching back at an unsteady pace. The cause was inflation, which is as nefarious to markets as a reality as it is as a fear. The Consumer Price Index rose 1.6% in the 12 months to April 2021, up from 1% growth to March. Economists always say that a single month of data can be misleading, and that may have been the case with April’s inflation data. However, the CPI captures pricing trends across the economy, from the cost of raw goods to the consumer reaching for his or her wallet. The data may not be an indication of inflation getting “out of the bag”, but it cannot be ignored either.

Gibraltar Chronicle May 2021

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Trainee Stockbroker & Investment Manager

Following an expansion of our business, Gibraltar Asset Management Limited is looking to recruit a talented individual to join our team as a trainee Stockbroker & Investment Manager.

The successful candidate should possess an Honours degree and be able to display a demonstrable interest in the financial markets. We require candidates with high levels of numeracy, literacy, a strong eye for detail and the drive and ambition to succeed.

In return, our demanding Graduate Trainee Programme offers a variety of learning environments, professional qualifications and personal development needed to build a career in finance.

Working alongside seasoned stockbrokers, you will be sponsored through the Chartered Institute for Securities & Investments stockbroking examinations (the Investment Advice Diploma) as well as the CFA’s Investment Management Certificate, the benchmark qualification for investment managers.

The successful applicant will receive a competitive starting salary, which will be increased with every examination passed. An annual bonus may also be paid, based upon individual and company performance.

The selection process will include a numeracy, literacy and financial knowledge test followed by an interview.

Please send your CV for the attention of the Managing Director, Mark Maloney, to World Trade Center, Suite 5.28, Gibraltar or email to gam@gam.gi.

We are not accepting enquiries from recruitment agencies on this occasion.

Market Commentary May 2021

With April winding down, you can count on someone, somewhere saying, “sell in May and go away”. That pronouncement is mainly popular because it rhymes, but there is truth behind it. Since 1966 the All-Share index has delivered a total return after inflation of 7.9% on average from Halloween to May Day, but has lost an average of 0.6% from May Day to Halloween – even including dividends. This is because in March & April lighter evenings and warmer days cheer us up, which makes us more willing to take risks such as buying shares. So prices rise to high levels, which are difficult to sustain over the summer. Likewise, in the autumn the darker nights make us gloomier, with the result that prices fall to low levels from which they recover.