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.
Markets have recovered after the shake-out of a few months ago, but we feel caution remains advisable given valuations and the challenges facing investors.
No changes here – we continue to look for interesting opportunities across all geographies.
We continue to be both concerned at the wider UK economy and market but enthusiastic about the prospects for UK smaller companies. It is difficult to see us increasing allocations to the UK without a dramatic turnaround in the both economic data and Brexit-related news.
Again, no changes – our specialist equity allocations continue to look more compelling than exclusively geography-focused approaches to asset allocation.
US Treasuries are starting to look interesting, though wider fixed interest markets remain unattractive on a risk-reward ratio.
No changes to property allocations, which remain significant despite last month’s slight reduction.
Absolute return, structured products and managed futures offer a robust defence against the tougher market conditions we see ahead.
Cash levels remain unchanged this month.
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.
