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.
Some disturbing virus data from the US and elsewhere has unsettled investors, but the overwhelming global policy response is enough to keep most in an optimistic mood for now. We remain vigilant given the risks ... and economic lockdown is only one, as trade wars come back to the business pages…
Mostly maintaining positions here, although we are introducing a European exposure in adventurous portfolios, trimming Japan and the US there. Plenty of challenges lie ahead for investors, but the balance of our equity exposure seems right.
We continue to discuss the UK at length. It looks as if we will fare particularly poorly from the COVID-19 crisis if most economists are to be believed. Europe is getting its act together on cooperation and so may present a united front in opposing the UK in trade talks. Sterling looks vulnerable and it feels as if the UK will continue to be unloved.
Technology and healthcare have enjoyed strong runs, but we are maintaining positions given long-term prospects.
No changes here, the exposure is diverse, and we feel it offers a balance of pure protection and some potential for returns in better conditions.
Given our broader outlook for the UK, property continues to cause us concern, but current pricing and the diversification we have in the selected vehicles make positions more secure for investors. We won’t stop re-evaluating our positions here.
We are continuing to work on our approach within the alternative strategies space, and we may make changes to the Cash Plus, Tactical Hedge and Uncorrelated allocations over the coming weeks.
Cash is maintained at previous levels.
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.
