Courtiers Wealth Management
Courtiers Wealth Management

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Earth, space, AI and markets

11 Jan 2024
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With December’s Client Seminars behind us, Leo and Gary sit down to talk about the new year, AI, and the importance of the UK market for stocks, businesses and investment.

Courtiers’ position at the end of 2023

“These next ten years are going to be very, very, very good.”

After what appeared to be a challenging year for value investors, the funds picked up in December, with improvements in the Global (ex-UK) and Ethical funds in particular, giving investors – and the Investment Team – positive news to end the year.

We currently hold a lot of stocks that are great value; their prices have gone up and are delivering good net profits. Gary thinks the next ten years are going to look “very, very, very good.


The importance of AI

There’s a lot of turmoil in life that could be making people depressed about the future, about politics – both here and in the US – and that can also spill into cynicism around AI. But while there is the notion that AI is a risk to humans, Gary thinks that AI is hailing a positive movement, and this will feed into good returns over the next 10-15 years, as well as increased productivity and incomes. Any companies able to lean into AI should do well.

AI is changing the way we live and think. Some educational companies are using AI to replicate and offer tutorage to all. This is elevating learning, meaning that if an average student is able to access individual tutorage – from an AI – they learn and become better performers, becoming good students. This is shown in practice through the Khan Academy – there’s a TED talk about it: How AI Could Save (Not Destroy) Education | Sal Khan | TED – YouTube.

Gary goes on to say that “if you can educate people better…you get an explosion in productivity.” In doing so, generally people will get more from their lives, earn more and accelerate human knowledge.

However, Gary warns against investing in companies that create AI, instead suggesting it may be better to look at the companies that use AI to better their propositions. Car companies, for example, could use AI to benefit – and not just Tesla! Stellantis, who we hold, for example, is doing well with a remarkable diversification including electric vehicles.


What markets are appealing right now?

We really like our own economy; we really like prospects for the UK.”

Jake talked in our December Client seminars about how Apple is worth more than the FTSE 350, and that doesn’t seem right. UK companies are doing great things; look at how we managed to create the Oxford–AstraZeneca COVID‑19 vaccine by having our educational institutions work alongside our excellent businesses. That’s the core of what we have working in our country – and it’s very exciting.

We’re looking at investment strategies all the time. With long-term, risk-averse investors, we know people and institutions entrust us with the money they need to get them through the rest of their lives. This is not speculative capital, so we take a very long-term view.

The Investment Team is always busy – constantly reviewing what we’ve got and what we might buy. At the moment, there’s loads and loads of great stock on the shelves and everything is looking reasonably priced. So, we can be discerning and that’s exciting, but it brings its own pressures.

Before considering the prospect of lifelike avatars, Gary concludes by saying, “I think what’s exciting for us now is the number of decent companies that you can pick up at a reasonable price with decent balance sheets, good profits, and they’re generating cash. And I haven’t seen anything as good as this for a long, long time.

It’s fair to say that with great change abound in the world, its business as usual at Courtiers.

Important information

Issued by Courtiers Asset Management Limited, CAM0423895. 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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