Courtiers Wealth Management
Courtiers Wealth Management

News & Insights

CIO Talk: Markets and AI

14 Apr 2023
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With growth stocks outperforming value stocks “by about 13% so far in 2023”, CIO Gary Reynolds accepts “it’s not the best of times” for a value investor like Courtiers.

But despite solid companies with strong balance sheets and low price to earnings ratios “taking an absolute hammering so far in 2023”, Gary says there is no prospect of Courtiers changing its approach just because of “a little turnaround in the market like this.”

Moreover, Courtiers is a value investor for good reason – “because it tends to win over the long-term.” This approach aligns with the long time horizon of Courtiers clients, “who are not expecting us to go chasing quick returns and speculating.”

“Our job is to make sure they can enjoy their capital for the rest of their lives and enjoy the fruits of their labours.”

Yes, he accepts “more money could have been made by piling into Nasdaq stocks”, but as he points out despite market sentiment turning against the value investing style, Courtiers Multi-Asset Funds are still making money in 2023.

What’s “encouraging” about the market’s rotation away from value stocks is that it increases the opportunities to find great companies at decent prices.

If Gary is encouraged by the opportunities in the market, he’s positively “excited” by the potential of AI (artificial intelligence). Not only will there be great opportunities to invest in companies that use AI, but also because AI has the potential to change the world for the better.

By raising productivity AI might even “come to the rescue of the global economy” –  including the UK with its shortage of workers. It could also lead to “terrific improvements” in people’s standard of living around the world.  For Gary, AI is another example of how despite “mankind’s sometimes abysmal behaviour” the human race continues to move forward.

Important information

Issued by Courtiers Asset Management Limited, CAM0423749. Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Tel: 01491 578368.

Past performance is not a reliable indicator of future returns. The value of investments, and the income from them, can go down as well as up and is not guaranteed and you may not get back the amount originally invested. Any forecast, projection or target where provided is indicate only and is not guaranteed in any way. Certain types of funds might carry a greater investment risk than other investment funds. Further details of the risks are associated with investing in Courtiers funds can be found in the Key Investor Information Document or Prospectus, copies of which are available on request or at www.courtiers.co.uk.

 

Disclaimer

This communication is for information purposes only and should not be relied upon in making an investment decision. The views expressed by individuals and the business are based on market conditions at the date of issue and are subject to change without notice. The mention of any stocks or shares should not be taken as recommendation to deal and does not take into account the individual investor’s investment objective or risk profile. Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. Any third-party sites, or pages which are linked to the document, have not been reviewed by us and therefore we accept no responsibility for the authors or content of external link or pages. If you are interested in any of Courtiers Asset Management Limited’s range of funds, or require any financial advice, please speak to a financial adviser.

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