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A lot of noise

Tune out the clamour and staying focused on investments

11 December 2019

Our Chief Investment Officer talks about market performance, impeachment proceedings in the US, the continuing US-China trade war, Brexit uncertainty, and the upcoming general election in the UK.

The current landscape

Despite ongoing worries about an imminent recession, it’s been a good year for all asset classes, and for equity investors in particular. While bonds have also performed strongly, we’ve long thought that they have become quite expensive, not least because the risk of recession does not appear to be as imminent as some in the market suspect.

There has been a great deal of market noise lately. In the US, there are impeachment proceedings of a sitting president for only the fourth time in history. Meanwhile, a trade truce between the US and China appears to be in the offing which should support the corporate sector. Elsewhere, the upcoming general election in the UK – the third election in just over four years – is creating an uncertain backdrop for investors. For our part, we do not feel that we have an edge in calling elections due to the unpredictability of the UK electorate.

Due to the UK economy’s relatively small role in the world’s capital markets, we believe that the election outcome is unlikely to have a significant impact on our overall asset allocation. In portfolios, we are positioned for a slightly better-than-feared economic outcome overall.

A lot of noise

As part of our aim to keep clients informed of our current investment views and how these themes are impacting your discretionary portfolios, Toby Cross, Head of Client Investment Solutions, talks to Will Hobbs, Chief Investment Officer. They discuss market performance, impeachment proceedings in the US, the continuing US-China trade war, Brexit uncertainty, and the upcoming general election in the UK.

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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