These terms of use refer to the following additional terms, which also apply to your use of our website: We recommend that you print a copy of this for future reference.īy using our website, you confirm that you accept these terms of use and that you agree to comply with them. Please read these terms of use carefully before you start to use our website, as these will apply to your use of our website. Use of our website includes accessing, browsing, or purchasing products or services on our website. These terms of use (together with the documents we refer to in it) tell you the terms of use on which you may make use of our website at ('website'). Please note these are subject to change at any time. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice. Portfolio characteristics and holdings are subject to change without notice. Investors may not get back the amount invested. The value of investments and any income from them may go down as well as up and is not guaranteed. Past performance is not a guide to future performance. This makes us positive on stocks, but in the absence of a dramatic fall in core inflation, further rate hikes and credit tightening are likely, ultimately, to push economies into recession, making defensive positioning necessary.Ĭommentary as at May 2023. The Investment Clock has moved into Recovery, with lower energy prices and Chinese re-opening helping growth to pick up as inflation drops. We see a new regime characterised by periodic spikes in inflation and short boom-bust cycles. Active management for short business cycles We are also enhancing diversification by moving some UK equity and property exposure into global equities and by adding an element of global bond exposure. ![]() In the current review, we are reacting to the higher level of yields on offer by increasing bond exposure. New SAA: Adding to bonds and increasing global diversification We review the mix regularly to maintain appropriate risk levels, to include new asset classes and to optimise exposures for the medium term outlook. We build resilience by diversifying broadly, including real assets like global equities and property, inflation hedges like commodities and by holding less in fixed income when yields are low. The strategic asset mix is an active choice
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