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 focusing on, and shares our thoughts on the issues of the day.
Markets have staged a rally after the disturbing deterioration in sentiment in December in particular. Given the speed of the sell-off, this was perhaps predictable, and we are far from complacent in the face of the challenges ahead.
No changes to our thinking here – our key regional preferences remain the same.
A frustrating one. We can see the possibility of a benign outcome to the Brexit saga, but the risks of increasing exposure seem finely balanced and for more cautious investors it seems appropriate to have low exposure.
We continue to believe a challenged long-term growth environment makes the identification of thematic winners all the more important.
The softening of tone from the Federal Reserve has brought some relief to the space and we maintain our very diverse allocations. We do, however, remain especially vigilant here given the problems that have developed within the corporate debt arena.
Brexit uncertainties cloud the horizon and we have taken the necessary steps to avoid the liquidity problems that could affect the sector. The asset class continues to boast attractive characteristics and is well represented in portfolios.
We continue to move towards lower volatility vehicles for more defensive clients. Overall, these strategies form a crucial part of our cautious strategy for investors.
Cash remains high for lower-risk clients and this seems sensible given the balance of risks in the markets.
Investment Line is written and edited by members of the Mattioli Woods Group investment committee 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 go down as well as up, and you may not get back the amount invested. Past performance is not a guide to future returns.
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