Whitechurch Asset Views - November 2018 | Whitechurch Securities Limited | Redland, Bristol

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Whitechurch Asset Views - November 2018

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Strategic Overview 
 
 Free Fallin'

 

 Below are the key factors that have influenced investment markets in recent weeks, followed by our current position. You can download the full report of our detailed review of the markets and positioning of our portfolios...

Investors had a rude awakening in October after a prolonged period of relative calm. Markets went into freefall with a sharp sell-off  in global equity markets, resulting in the worst month of performance since May 2012.

Best & worst fund performance

Whilst the sell-off was largely indiscriminate, IA China and Greater China suffered the heaviest falls (-11.0%) as investors became increasingly concerned over a broader slowdown in China, partly due to the increase in trade tensions with the US.

Volatility spikes across the globe

Stockmarket volatility saw a significant increase in October. The “Fear gauge” VIX index started the month at below 12 and spiked at 25 during the sharp sell-off in the middle before finishing the month at around 21.

UK blue chips prove relatively resilient

Whilst the UK markets fell back in what was a universal sell off, the UK stockmarket fall of just over 5% meant it was the most resilient of the leading global markets.

Currency diversification dragged on performance

Holding a basket of currencies proved positive for UK investors during a risk-off environment in October.

A month of two halves for bond investors

Bonds saw a sell-off early in the month as investors grew increasingly concerned over higher global interest rates, before recovering later in the month as they returned to favour as a safe haven in turbulent markets.

The best of the rest

Commercial property proved a resilient alternative to equity and bonds and is proving a good bedrock within our cautious and balanced portfolios.

Looking Ahead

We do not try to second guess short-term market movements, although less demanding valuations following the market falls do provide more opportunities for those who can invest without being fixated on short-term market fluctuations.

Download Full Asset Views Report