As we reflect on the three months since our last market update, ‘unpredictability’ seems to be a continuing theme.
Within three months, it seems that politically we have moved from what many foresaw as a clear direction, to having a snap General election and politicians learning that the UK electorate is not afraid to voice their opinion.
The overriding theme seems to be that whilst Brexit continues, many feel that ‘austerity’ needs to be slowed or even ended.
Despite the media’s portrayal of this being unprecedented, many of the arguments are very familiar and well established. It has always been a balance of economic and social goals.
From an investors perspective, the unique situation is how we extricate ourselves from Europe, our productivity in terms of GDP as a country, plus the ongoing period of low interest rates.
This has a direct impact on how global markets view the UK and as a result our currency exchange rates continue to fluctuate. At the moment, the slightest change has a direct impact on the FTSE indices.
Yet despite these concerns the UK and global equity markets have been fairly steady. Overall the year to date has been one of steadiness. Clients have seen their portfolio valuations rising steadily.
Looking ahead, most pundits are in agreement. In the short term, the UK looks as though it is going to have some volatility politically, but most foresee opportunities for investors over the longer term and most global investors are looking at equity investments as being a good opportunity.
Overall, we agree with this positive outlook and remain focused on what is described as a ‘value’ investment strategy.
That said we are equally focused on diversity and with most clients, we continue to build portfolio’s including all sorts of asset types within investments including property, fixed interest, absolute return funds, and, most recently, infrastructure funds.
Long term we are confident clients will see real growth in the portfolio’s.
As always, do not hesitate to get in touch with Platinum, and our team, if you would like to discuss your investment strategy or if you have any concerns.