“We have trimmed equities to a slightly less overweight position and shifted some money out of credit into government bonds and cash strategies after the strong performance of the last couple of months. We expect a generally positive trend in equity prices over 2016 but we are towards the top of the recent range and markets tend to make little progress over the summer.
We are seeing signs of a pick-up in global growth as the effects of a low energy price and loose monetary policy in Europe and China take hold.
We remain overweight equities in Europe and Japan, markets that should benefit from looser monetary policy and a resumption of the trend of gradual dollar strength. We are underweight the UK but have moved the Asia Pacific and the emerging markets to a more neutral position funded out of the US as economic data has improved.”
You can access up to date views from Trevor on the market and the movements of the Investment Clock on our Latest Investment Clock updates page.
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Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.