Our Investment Clock remains in its ‘Overheat’ phase, with greater risk of inflation, although there are indications of economic weakness outside the US.
We expect stocks to trade in a range over summer; investor sentiment, having been very fearful in February, is now neutral. After capitalising on weak markets in the first quarter to increase equity exposures, we have been taking profits on our overweight position as prices recovered, moving the proceeds into cash.
Longer term, we remain positive on stocks but more cautious on government bonds. We are moderately overweight global equities, global high yield bonds and commodities.
You can access up to date views from Trevor on the market and the movements of the Investment Clock.
|Absolute Return Strategies (including cash)|
Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets