Name: 2023 will be more civilised as the retail investor makes a comeback
Uploaded: 2023-01-19T19:29:19.775182+00:00
Duration: 1676 s
Channel: Master Investor

Master Investor

Master Investor's Sarah Lowther and Jonathan Davis tackle the stories and themes that defined the investment landscape of 2022 – a year that saw the return of double digit inflation and a war on the continent of Europe.
 
The pair talk about the returns being made by investment trusts, the new wave of consolidation in the publishing industry, why you should worry if a company changes its name and whether we're experiencing a short term or serious bear market and how investors can thrive regardless.

<p>Master Investor's Sarah Lowther and Jonathan Davis tackle the stories and themes that defined the investment landscape of 2022 – a year that saw the return of double digit inflation and a war on the continent of Europe.<br/> <br/>The pair talk about the returns being made by investment trusts, the new wave of consolidation in the publishing industry, why you should worry if a company changes its name and whether we're experiencing a short term or serious bear market and how investors can thrive regardless.</p>

The power of the retail investor

Consolidation in the publishing industry

Developments among investment trusts

The duration of bear markets

2022 in summary

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/005/637/005637/video_ZfViWNi.mov

Sarah Lowther and Jonathan Davis agree that the retail investor is making a big comeback, and debate the role of both Microsoft and the London Stock Exchange in giving retail investors access to an information and data supply service.

Describing the wave of consolidation among publishers in the UK, Sarah Lowther and Jonathan Davis reflect on the failed merger of Penguin Random House and Simon & Schuster, and highlight Bloomsbury Publishing as a potentially attractive bid target.

Jonathan Davis agrees that the current bear market had a negative (though not unexpected) impact on investment trusts. However, highlighting data from the AIC, he stresses that over 40% of those investment trusts with a market cap of over GBP 50 million had actually made a positive net asset value return over past 12 months, and 20% a share price total return.

Jonathan Davis confirms that bear markets occur fairly regularly and at relatively large intervals, and are usually defined by a 20% decline from peak to trough. As a rule of thumb, the duration of a bad bear market is around 18-24 months. For the current bear market, Jonathan expects a period of relatively lower returns.

From an investment perspective, Jonathan Davis considers 2022 "difficult but not without hope". He highlights both the double-digit inflation and war in Europe as two of the year's key negative developments.