“Global equity markets are up strongly on the back of expectations for looser policy in response to the UK’s vote to leave the EU. We have responded by trimming our overweight in equities and moving Europe to a small underweight. Sentiment is getting euphoric in the near term but we see downside risks linked to the UK’s Brexit negotiations, fragility in the euro area banking system and the US Presidential election.
We remain modestly overweight equities as we see continued recovery in the world economy. We would look to buy dips later in the summer in commodities and the emerging markets in particular, asset classes where Brexit will have a limited impact but where loose US policy is a major boost.”
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.
|Absolute Return Strategies
Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.