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.
So many potential challenges existed to the euphoric narrative at the start of this year, but COVID-19 coronavirus is one nobody expected … no changes as yet.
China and Asia look vulnerable in the face of a COVID-19-induced slowdown, but all developed markets are starting to come under pressure. There will be opportunities that emerge from any sustained sell-off; clearly some areas may be held back for longer than others.
The UK is far from immune to the global equities sell-off and it still feels right not to have rushed in here after the Election given the challenges ahead.
If global growth does slow, our preferred niche ideas should really bear fruit.
We maintain a diversified range of fixed income investments in portfolios. The recent COVID-19 story has increased the attractions of US Treasuries for investors.
The relief for UK property was palpable after the Election and the investment case continues to look solid, concentrating on income.
A wide range of investment strategies continues to be employed to help navigate these challenging markets.
Cash could become increasingly attractive as a defensive asset if markets remain unsettled. We prefer to be fully invested if possible, although we should never forget that holding cash, at times, is a perfectly good discipline.
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.
Mattioli Woods plc is authorised and regulated by the Financial Conduct Authority.