When the going gets tough...
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 some respite in November, although market volatility continued, with were a number of bright spots.
Geopolitical events continued to dominate market moves and concerns around global growth continued - although US/China trade war fears reduced after the meeting between Trump and Xi at the G20 showed an inclination to de-escalate tensions.
Best & worst fund performance
November saw reversals to October’s trends with IA China and Greater China seeing the biggest gains up 6% as fears of a trade war eased. More modest gains were seen in some of the other global markets with IA North America up 2.2%.
Volatility spikes across the globe
After October’s falls global equity markets recovered marginally and some managed to post modest gains in November, despite expectations for global growth continuing to drift lower over the month.
UK blue chips prove relatively resilient
Markets remained volatile with the Mid 250 being the hardest hit area as Brexit impasse continued and lower crude oil prices and broader concerns around the global macroeconomic outlook weighed on large cap resource sectors.
Asia and Emerging Markets were the place to be
Asia Pacific and Emerging Markets saw a strong reversal in fortunes during November and were the stand out performers amongst all asset classes and regions.
A bad month for bonds
Traditional defensive Government bonds and investment grade bonds sold off over the month (the IA Gilt sector fell back 1.5%) as concerns over inflation and rising interest rates increased.
The best of the rest
Commercial property continued to grind out gains whilst providing a good income and is proving a good bedrock within our cautious and balanced portfolios. .
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.
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