Business & Finance

Mountstone create and manage bespoke investment portfolios for wealthy families, charities and trusts.  CEO James Keen publishes a monthly investment update for their clients.

Mountstone Partners was three years old on the 3rd September 2015 – happy birthday to us.  However we will not be basking in the glory of our continued existence, not least because this has been the worst quarter for equity markets since our inception.

You may recall how excited we were when the FTSE 100 first closed above the 7,000 mark back on the 9th April 2015.  So excited in fact that I took a picture of the day’s closing value on my phone to capture and preserve the moment.  However since then the FTSE 100 has plunged again back down through 6,000, reaching 5,898 on 25th August before re-bounding somewhat in October.

So what have been the major drivers of the recent decline in equities?  In a word “China”.  A surprise devaluation of the Renminbi on the 10th August in order to stave off the effects of a flailing economy took the markets by surprise and led to a plunge in equities across the globe.  The impact was not so much related to the magnitude of the move (2-3%) but more the intention that it showed and the political significance.  Entering a round of competitive devaluations with the US (currency wars, by another name) is not a decision to be taken lightly and the world judged this to be a panic move from a stuttering engine of world production.

This month we look back upon world events over the last extraordinary three years of our existence and consider what the future holds for equity and fixed interest investors over the years ahead.

Mountstone Partners

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Mountstone create and manage bespoke investment portfolios for wealthy families, charities and trusts.  CEO James Keen publishes a monthly investment update for their clients.  Here is his latest communication published on 11th September 2015:-

During a torrid August for world equities all developed and emerging markets plummeted, dragged down by fears of continuing slowdown in China and the knock-on effect that this may have on the prospects for global recovery.

Now that the initial hiatus has died down and since markets have stabilised for the time being, we feel that it is time to consider assets that have been sold indiscriminately, regardless of value.

UK equity markets have been very badly affected, with the FTSE 100 falling 14.76% peak-to-trough.  Whilst this has been justified across some sectors of the index (mining and oil stocks for example), many others have been unfairly tarnished, panic sold in the face of a worsening positon in China to which they are not really exposed.

With the FTSE 100 currently sitting at 6171, we believe that the recent sell-off has created good value.  This month we look at the relative performance of differing sized UK companies and consider the reasons why now might be a good time to buy unloved UK equities, particularly for those who have very little exposure at present.

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Mountstone Partners Ltd

Mountstone Partners create and manage bespoke investment portfolios for wealthy families, charities and trusts.  CEO James Keen publishes a monthly investment update for their clients.

Here is August’s Newsletter in which he writes:-

We have not invested in commodities or China for the last two years, fearing that the tapering (and ultimately the withdrawal) of quantitative easing in the US would speed the decline of growth in emerging markets.

In recent days China has started to devalue its currency in order to increase competitiveness.  This is a bold and worrying development.  If there is anyone out there still oblivious to the troubles in the Chinese economy, this devaluation should signal that economic slowdown is now a major concern in Beijing.  Whilst we find it impossible to comprehend that there are any investors left who haven’t already foreseen this slowdown (given the raft of negative economic data over the last 12 months), the falling markets in recent days leads us to believe that there are many who were caught unawares by this most recent move.

This month we consider what the slowdown means for China’s trading partners and assess the impact on the global commodity markets.  We conclude that there is likely to be worse to come for commodities as the Chinese economy continues to falter.

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Mountstone Partners Ltd

The Vintage Magazine is delighted to continue our relationship with DKLM, and to welcome their continued presence as ‘Business Members’ of The Vintage Magazine, because they are a diverse, friendly and commercial City Law firm with numerous specialities, and we hope that our readers will make use of their wide range of services, because they are an excellent firm with an impressive reputation.  Their latest newsletter addresses the issues of being a foreigh investor.

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DKLM Solicitors

 

Some businesses grow slowly, some explode onto the scene and continue to grow to outstrip their competition. Vardags, the ‘Diva of Divorce’ Ayesha Vardag’s eponymous matrimonial law firm is definitely a case of the latter. Beginning life in 2005 out of the spare room in Ayesha’s Georgian townhouse in Islington, Vardags started small. Less than a decade later, it’s firmly established in London’s ‘Magic Circle’, running many of the biggest-ticket clients and hiring lawyers from top city firms, with Ayesha dubbed “Britain’s top divorce lawyer” and “the Diva of Divorce”.

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Ayesha-Vardag-Divorce-Diva

Mountstone Partners create and manage bespoke investment portfolios for wealthy families, charities and trusts.  CEO James Keen publishes a monthly investment update for their clients.

Here is March’s Newsletter in which he summarises the key points from Thursday’s budget that he thinks will directly affect you as an investor, ranging from changes in pension legislation to ISAs to savings.  Please contact him if you have any enquiries:-

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Mountstone Partners Ltd

There has already been a great deal written about the pros and cons of an independent Scotland.  If there was a very strong economic argument for such a move then investors would find it much easier to support, however at the moment nobody seems to be able to make the numbers add-up and this is a grave concern.  This is partly because oil & gas prices and the longevity of “Scottish” oil reserves will play a major role in determining whether or not an independent Scotland can balance its books and both are considerable “unknowns”.

This month our short overview touches on some of the major issues.  Regardless of the emotive issues, with so much uncertainty surrounding both the outcome and the implications of a “Yes” on 18th September, at the very least investors should be concerned about the short term volatility that such a result would create.

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Mountstone Partners Ltd

Mountstone create and manage bespoke investment portfolios for wealthy families, charities and trusts.  CEO James Keen publishes a monthly investment update for their clients.  Here is June’s Newsletter:-

Property Bubble In China

Believe it or not, over a two year period China produced more cement than the US did in the entire 20th century.  Now, with accelerating urbanisation and abundant cheap credit, the Chinese property bubble has inflated to bursting point.  The attached two-page summary provides the background to this astonishing market and whilst this property crisis is a local issue, we ponder the ramifications for the Chinese economy and beyond.

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Mountstone Partners

……….is what is needed in our 21st Century Global Village. With many of us owning property and sometimes living in more than one country, will my Will and Last Testament be effective worldwide? It may work under English law but fail in France where I have a holiday flat. And what if I happen to be French but live and own property in London? Let us look at some common examples of cross-border problems when it comes to making a Will.

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DKLM Solicitors