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.
Despite concerns over global growth, Brexit, trade wars and Iran, asset prices have picked up over the last few months. While Brexit continues to dominate headlines in the UK, we are very aware that other topics are more important for global markets and we are monitoring these closely. We are not making any changes to asset allocation this month.
Regions especially exposed to global growth do look vulnerable, and although we are holding our positions for now, we are scrutinising all global allocations.
If the UK were an overseas market, would we bother at all? Possibly not, but for UK-based sterling investors it remains an important allocation, and there is potentially significant value for the most adventurous clients.
These allocations could be crucial differentiators if we enter a period of slower global growth.
The flight to safety is manifesting itself in fixed income markets – we continue to consider the nature of our exposure.
No changes here – it is hard to be optimistic on the UK economy, but the asset class retains some appeal.
We continue to move towards lower volatility vehicles for more defensive clients. Overall, these strategies form a crucial part of our cautious approach for investors.
No change here – we continue to hold reasonable cash positions lower down the risk spectrum given the risks across many asset classes.
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.