Market uncertainty due to Brexit has been ongoing for more than three years, and due to the US-China trade war for almost two. Both of these have real implications for companies’ long term investment decisions, such as where to build a new factory or which suppliers to work with. This uncertainty has meant that companies have been delaying decisions and not making new investments. As a result, global economic activity has slowed.
While we are hopeful, we are not yet optimistic. The balance of risk remains on the downside so we have taken risk off the table once again: this time by focusing portfolios on managers with strong valuation discipline, and selling investments when they get expensive.
Please note: our views may change at any time.
The overall structure of any portfolio is determined by its risk profile, and our views will influence your portfolio based on its default positioning.