MWM are pleased to bring you our latest market commentary covering quarter ending 31/10/2017. In this instalment we look at the impact of the ongoing geo-political tensions, Brexit, the Goldilocks scenario and more.
Geo-political tensions dominate
Geo-political tensions dominated the quarter with rhetoric between the North Korean President Kim Jong Un and Donald Trump accelerating. This was combined with an historic policy move by the US Central Bank, major elections in Germany and a range of natural disasters causing widespread destruction. This should have been enough to unnerve markets, but ultimately investors remain confident believing that the economic environment continues to improve.
The tragic impact of several natural disasters across the Caribbean and US, took a terrible toll on human life, as well as prompting anxiety about their economic impact. Politically, these events allowed President Trump to reach a short-term deal with the Democrats, on the debt ceiling and provide additional spending to help the aid relief.
Escalation of political risk
Unwinding of US stimulus
Political elections in Europe
Brexit rolls on
The Goldilocks scenario
Why invest in UK Equities?
As we have said so many times before in our investment commentaries, there is real and present risk to investing.
Yet without risk, there is no return and without return, we cannot reasonably expect to contain the impact of inflation upon the real value of your wealth, as it continues to creep back into global economies.
Our primary control against investment risk is a well-diversified portfolio, aligned to a long term outlook. The corner stone of any investment strategy is understanding the risk that you are ‘willing and able’ to take. Of course your ‘investment term’ will fundamentally impact your ability to take investment risk. The shorter your investment horizon, the greater the risks presented by market volatility.
If you would like to discuss your investment portfolio(s), please do not hesitate to contact your usual financial planner. Alternatively, you can telephone +44 (0)20 7387 5868 or email firstname.lastname@example.org.