John Bennett and Andrew McCarthy, Co-Fund Managers on Henderson European Focus Trust, discuss their thoughts on markets as we head into 2019, in particular an expected slowdown in the US and the emergence of value-driven opportunities in Europe.
Global synchronised growth: Simultaneous economic growth by regional markets
Volatility: The rate and extent at which the price of a portfolio, security or index, moves up and down. If the price swings up and down with large movements, it has high volatility. If the price moves more slowly and to a lesser extent, it has lower volatility. It is used as a measure of the riskiness of an investment.
Bear market: A financial market in which the prices of securities are falling. A generally accepted definition is a fall of 20% or more in an index over at least a two-month period. The opposite of a bull market.
Bull market: A financial market in which the prices of securities are rising, especially over a long time. The opposite of a bear market.
Depreciation of sterling: Decline in value of the pound against other currencies, chielfy against the US dollar and the euro.
Mean reversion: A financial theory suggesting that asset prices and returns eventually return back to the long-run mean or average of the entire dataset.
Disruption: The innovation of technology and businesses that displace established technology and shakes up the industry; or the creation of a new industry by a ground-breaking product or service.