A selloff in global equity markets has pushed our investor sentiment indicator deep into panic territory; in response, we began contrarian purchases of stocks, as our models are constructive on world growth and risks related to inflation and interest rates do not seem strong.
We also increased commodities exposure following recent underperformance, while remaining below benchmark. These purchases were funded from government bonds and cash.
With US fiscal policy loose, interest rates low elsewhere in developed markets and China easing policy, we expect the global economic expansion to continue into 2019 and this to be supportive for equities.
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 (including cash)|
Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.