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Markets cool as the weather hots up

Are we prepared for the bumpier road ahead?

28 June 2019

1 minute read

Our Chief Investment Officer discusses our outlook for the global economy in the face of further trade tariff escalations and the resulting volatility they bring.

The current landscape

The broadening front in trade tensions has got many investors increasingly worried about global growth prospects. Market expectations for a rate cut in the US have risen accordingly. Despite our recessionary indicators ticking up slightly and trade war uncertainty hitting private sector confidence, we still believe that the world economy remains in good shape.

Elsewhere, Emerging Markets Equities have suffered a swing in sentiment. We think the market has been disproportionately punished and retain our overweight exposure.

Sterling weakened over the month as the market priced in the rising probability of an exit from the EU without a deal. We still expect an exit with a deal but the risks of both a no-deal exit and indeed no Brexit at all have risen in recent months.

While opportunities remain, investors should expect a slightly rockier road ahead than in 2018. However, the message remains the same: Get invested. Stay invested. Stay diversified.

Markets cool as the weather hots up

Will Hobbs, Chief Investment Officer, talks with Toby Cross, Head of Client Investment Solutions, about the ongoing trade tensions, emerging markets and recent sterling weakness.

Things to consider

The value of investments can fall as well as rise. You may get back less than what you originally invested.

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