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

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Whitechurch Asset Views - June 2018


Strategic Overview 

There have been plenty of geopolitical issues to keep investors on their toes recently but one area that has been remarkably calm has been European politics. But last month that all changed as Italian politics took centre stage in terms of generating headlines...

It was also pleasing to see that from a style perspective ‘Value’ showed outperformance whilst expensive ‘Quality’ areas of global stockmarkets lagged. It is our view that many leading defensive quality stocks are trading on demanding valuations and that there is more scope for shrewd stock-pickers to hunt for value in unloved, cheaper stocks.

Although global stockmarkets broadly moved back to positive territory, the elevated level of volatility of the first quarter persisted through much of April. After exceptional low levels of volatility in 2017 it is realistic to expect volatility to be more in line with longer-term levels going forward. Geopolitical headlines continued to play a significant role in unsettling investors, particularly the prospect of a “trade war” between the US and China alongside an escalation of tensions between the US and Russia over the situation in Syria.

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