Mazars Wealth Management Investment Newsletter Spring 2019

Read our full MWM Newsletter Spring-2019

Global stock markets regained their poise in the first three months of the year returning just under 10% in Sterling terms, and nearly recouping the losses from the final quarter of 2018. These gains were delivered despite continued concerns about economic growth which brought about a fall in sovereign bond yields and caused Gilts to rise by over 3% during the period. The market’s change of mood was largely attributable to the US Federal Reserve’s shift away from raising interest rates, and its indication that it would be “patient” in its approach to monetary policy. Thus it appears we are returning to a situation where interest rates may remain very low by historical standards for the foreseeable future, and with lots of money chasing few attractive investment opportunities (yields on safer assets remain very low) stock markets remain buoyant despite predictions of a forthcoming recession.

Our Investment Committee agreed to maintain our cautious stance reflected by our neutral position in equities and overweight position in gold. As Brexit and the value of Sterling continues to be a risk for UK investors, we implemented changes to protect our portfolios against a possible rise in the value of the Pound, and reinstated our exposure to domestically focused UK companies.

David Baker, CIO

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