Investment Line is a regular investment bulletin produced by Mattioli Woods plc. The communication provides an update on funds, highlights some of the areas we are currently focusing on, and our thoughts on the issues of the day.
The sense of increasing caution persists in markets. Global tensions remain high and the potential contagion from events in Turkey presents another unknown for investors.
No changes – plenty of causes for concern across even “in favour” regions such as Asia mean that appetite for risk is limited at the moment. We are holding our overseas allocations where they are for now.
Sterling has been under pressure, which means UK large cap companies will benefit in the short term – the overall outlook remains very unclear.
As discussed, certain themes would seem to offer long-term protection against the uncertainties affecting markets.
A potentially rocky road ahead for bond markets, but there is enough value in the US Treasury market to see us extend our positions to include Balanced portfolios.
No changes to property allocations, which remain significant, and we continue to balance our enthusiasm for the asset class with our less constructive view on the UK.
Our combination of absolute return, managed futures and structured products forms a crucial part of our strategy across portfolios.
The challenging environment means we retain cash levels where they are for now.
Investment Line is written and edited by members of the Mattioli Woods Asset Allocation Team, and is for information purposes. It is not intended to be an invitation to buy, or act upon the comments made, and all/any investment decisions should be taken with advice, given appropriate knowledge of the investor’s circumstances. The value of investments and the income from them can fall as well as rise, and investors may not get back the full amount invested. Past performance is not a guide to the future.
Mattioli Woods plc is authorised and regulated by the Financial Conduct Authority.