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 are moving to price in the risks of a protracted trade war, which further supports our cautious positioning. While we are making a few tweaks to portfolios, the fundamental approach remains unchanged.
The fallout from the US-China trade spat is being felt sharply across global equity markets with China, Emerging Market and Europe predictably affected – yet any flight to safety at the same time as slowing global trade could hit Japan especially hard.
A contrarian view on the UK has not tempted us yet – the outlook is challenging and we are not adding to holdings.
Our enthusiasm for global smaller companies sees us add to holdings in some portfolios.
The view US Treasuries are starting to look interesting is gaining traction in markets and our positions should benefit from this.
No changes to property allocations, which remain significant, and we continue to balance our enthusiasm for the asset class with our less constructive view on the UK.
Our combination of absolute return, managed futures and structured products forms a crucial part of our strategy across portfolios.
Cash levels reduced in Cautious models, with absolute return benefiting from the switch.
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.
