After a lengthy update last week, I’ve decided to keep matters reasonably brief this week as I don’t want to repeat much of what I’ve already said. It does appear though, that the needle is moving on a possible truce in Ukraine which will be celebrated by most concerned (subject to the details) and indeed the markets. The key then will be whether a deal can be struck to provide longer lasting peace and stability in the region.
Positive news for the US economy, certainly in the immediate term, as the US House of Representatives passed a budget resolution that calls for trillions of dollars in tax and spending cuts. This was well received by the markets despite the narrowness of the victory. The resolution passed by 217 votes to 215.
US equity markets in general, are demonstrating weakness particularly technology and growth stocks. Nvidia shares dipped on Wednesday after it reported earnings that fell short of sky-high expectations. It forecast first-quarter sales of about $43 billion, slightly beating estimates, but said gross profit margins would be tighter than anticipated.
On the flip side, our income portfolio is proving resilient, and bonds have responded well during the recent volatility. Take a look at the graphs below. The outstanding performer though is China with the Hang Seng rising by 13.28% for the month.
This week I thought I would highlight the importance of keeping abreast of the performance of individual holdings within portfolios. This week, the ‘spot the dog’ review was announced by Best Invest and it makes interesting reading. St James’s Place top the list of underperforming fund managers and more of the so-called mega funds are also finding their way onto the underperforming list.
By way of reinforcement of the changing landscape, defence stocks are now in vogue as governments across Europe are expected to increase their spending on weapons. Controversial in many ways, but there is no doubt about the momentum here.
On this week’s agenda:
- Agreement over minerals deal
- Market weakness
- St James’s Place (SJP) tops Best Invest ‘Spot the Dog’ report for underperformance.
- Mega funds begin to suffer
- Defence stocks
- Huge implications for the Chinese economy
- Investment performance
- Summary
Continues…
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Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.