Key takeaways:
- The Bankers Investment Trust remains balanced from a regional and sector perspective. However, at the stock level, Alex has increased exposure to cyclical stocks and reduced exposure to overvalued, highly priced companies.
- The Asia Pacific region has struggled this year, owing to the recurring waves of Covid-19 and slower growth from China. In addition, the recent property market scandal in China has also soured sentiment towards the region.
- The outlook for 2022 looks encouraging as vaccines get more evenly distributed across the globe and economies open up. However, risks remain; inflation remains high, central banks will begin raising interest rates, and energy prices are spiking.
Glossary
Capital expenditures (CapEx):Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company.
Glossary
Cyclical:Companies that sell discretionary consumer items, such as cars, or industries highly sensitive to changes in the economy, such as miners. The prices of equities and bonds issued by cyclical companies tend to be strongly affected by ups and downs in the overall economy, when compared to non-cyclical companies.
Glossary
Inflation:The rate at which the prices of goods and services are rising in an economy. The CPI and RPI are two common measures.
