Market volatility spiked in early March following the invasion of Ukraine; commodity prices surged amid concerns that Russian oil and gas supplies to Europe could be stopped. Higher energy prices threaten to squeeze disposable incomes further given already high inflation and central banks now increasing interest rates to try to reign it in.
Given their negative real returns, we moved further underweight gilts and underweight (from neutral) corporate bonds, preferring short duration global high yield bonds. We added to our modest equities overweight as global growth is positive but reduced our overweight in commodities. We remain around neutral commercial property.
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.