Taking a step back, there are several factors investors are concerned about from British politics
\nand the Brexit process to Donald Trump, threats of impeachment, the 2020 US election race
\nand global trade tensions. And, all the while, there is a growing consensus that the global
\neconomy is slowing. <\/p>\n
However, whilst we do keep an eye on these issues, we prefer to evaluate company Above all else, it is our conviction in digitalisation as a major structural change that we think At a macro-economic level, we remain focused on central bank policy as their actions have a Overall, we are confident backing the companies taking technology seriously as we enter the When looking ahead to next year it is easy to focus on the many uncertainties around the
\nfundamentals and trends without being too hamstrung by the global headlines. There will
\nalways be wars and worries and 2020 is no different, but as renowned author Nassim Taleb
\nsaid: \u201ctrust none of what you hear, some of what you read, and half of what you see.\u201d<\/em><\/p>\n
\nwill define performance over the long-term. We will continue to focus on investing in companies
\nthat are disrupting the industry, investing heavily in their IT systems, shifting business models
\ntowards digitalisation, implementing data analytics and cyber security and building ecosystems. Companies that can fine tune their offering to deliver seamless, low cost solutions to
\nboth their existing clients and the new generation of tech savvy customers will likely dominate.
\nImportantly, this is just the start \u2013 financial innovation is a long-term structural tailwind still in
\nits formative stages. For example, the use of cash in the UK is on the decline and by 2026 it is
\npredicted cash will be used for just 21% of transactions down from 62% in 2006. In the US,
\n62% of people think that they may see the death of cash within their lifetime while internet
\nadoption is rapidly increasing accessibility to mobile banking in regions such as India, opening
\nup services to those previously \u2018unbanked\u2019. Add to this an environment of low interest rates
\nand the outlook for digitalisation becomes even more compelling. <\/p>\n
\ndirect impact on financial companies. How the central bankers play their cards depends largely
\non how Western governments, in particular, react to a slowing global economy. In 2020, it is
\nquite possible we will see the current US administration announce a package of fiscal stimulus
\nmeasures in order to kickstart a US economy where growth has begun to stall. If this happens,
\nit is likely Europe will follow suit especially given the European Central Bank\u2019s (ECB) recent
\ncall urging euro zone members to adopt expansionary fiscal policies. Such policies would
\nstimulate the global economy, but also prompt a rise in inflation expectations, potentially
\nresulting in the yield curve righting itself to a more traditional upwardly sloping shape. This
\nwould be beneficial for banks, financials and fintechs as they are once again able to benefit
\nfrom the spread between short term and long-term rates. <\/p>\n
\nnew year. We believe that we will best serve clients by investing in the companies of the future;
\nthe enablers and adopters creating and using cutting-edge, world-changing financial
\ntechnologies that we think will flourish over the long-term. <\/p>\n","protected":false},"excerpt":{"rendered":"
\nworld, but we prefer to focus on what we consider a certainty: the continued, rapid digitalisation
\nof the financial services industry. We have already seen huge disruption on this front in the last
\nfive to ten years and we expect this to continue creating new investment opportunities through
\nthe next decade and beyond.<\/p>\n","protected":false},"author":1,"featured_media":84277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1483],"tags":[1663,1655,1651,1437,1807,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/84279"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=84279"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/84279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/84277"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=84279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=84279"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=84279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}