By their very nature, economic cycles include both periods of growth and periods of decline. “What goes up must come down”, as they say. Over the last few months, speculation of an imminent recession has risen as economic growth shows signs of weakening globally. Our insight piece this quarter considers the impact of recessions on portfolio returns using 70-years of data. And while warnings of a downturn can be unsettling, it explores why attempting to time the market can be risky.

2022 is proving to be a turbulent year for financial markets. In this audio update Andre Pimenta is joined by Chris Barrie, responsible for investment research, and James Brown, head of investment management at Edison. Together they discuss the current monetary and macroeconomic backdrop, implications for investors and explore how this has influenced recent investment decisions at Edison.

When it comes to investing, we often hear that volatility is normal. Markets are both reactive and (striving to be) predictive, so it makes sense that when the news turns sour, stock tickers turn red. In this insight piece, we consider the valuable lessons we can take from 36 years’ worth of market data on downturns. In short, dips rarely mean disaster.

Whether it’s paying for your children’s education, securing a retirement or realising financial independence, knowing where and how to invest is a key part of meeting investment objectives. It’s an age-old question. Finding the answer requires good data and an open mind. In this insight piece, we explore how our use of data underpins the formation of our long-term strategies by harnessing the benefits of diversification and portfolio optimisation.

The 26th Conference of the Parties (COP26) in Glasgow aimed to set new targets for limiting global warming and reducing carbon emissions. It stressed the need for consensus in making meaningful change and the role of business leaders and investors as key in driving capital towards more sustainable outcomes. In this insight piece we touch on some of the main conference agreements and explore Edison’s approach to sustainable investing.

From the FTSE and Topix, to the Dow Jones, our insight piece this quarter is a quick read on indices and index funds. It explores their 130-year-old origins and why funds tracking an index may (or may not) be included in a portfolio.

One year into the pandemic, the gradual reopening of society is allowing for high streets and city centres to welcome back shoppers and workers. Rising levels of activity have stirred discussions about inflation. But why does inflation matter? This insight piece will explain some potentially wide-reaching impacts and the ways investors might mitigate the risk.

The coronavirus has brought with it new awareness and understanding of the risks involved in everyday life. In seeking a return, investing also comes with its own set of risks. In this insight piece, we explore an important hidden force within volatile portfolios that can have huge long-term consequences.

From furlough to support payments, one knock-on effect of the coronavirus pandemic has been a huge increase in the required levels of government spending. In order to pay for it, government debt around the world has been rising. The US alone is expected to add $2 trillion to its balance sheet this year. As the numbers become ever more unfathomably large, we consider whether we are headed towards a different, debt-shaped, crisis. Does the debt matter?

During the coronavirus pandemic we have witnessed interest rates fall to historic lows globally. For now, they are set to remain low or, as some have suggested, even turn negative. We explore the often misunderstood topic of interest rates with a brief look back to their early origins in the ancient region of Mesopotamia, and what negative rates might mean for savers and borrowers.