Please find below our Weekly Market Update for the week ending 12th April 2019.
Blue Sky Comment
Although equity markets have fallen away a little this week, there is plenty of risk appetite out there. Global equities delivered a strong first quarter return. Whilst indicators suggest that the global economy is slowing, other factors have helped stimulate investors’ appetite.
The Federal Reserve’s view on holding back interest rate rises, along with other central banks, have helped support government bonds. This has also helped equities ‘bounce back’. So much so that we have equities and bonds rising together, which is never bad for a balanced portfolio, but of course if it goes the other way and they fall in unison, then this presents a problem. Hence why we are always seeking to add diversifiers to portfolios and obtain alternative assets which have a low correlation to bonds and equities.
Of special note is the performance of Emerging markets. Never for the faint hearted but after a long period of weakness, this sector is showing strong signs of recovery. This creates a positive environment for emerging debt which we have been wary of for some-time. Helped of course by a softening and sanguine US dollar.
Have a good weekend
P.s…no mention of the ‘B’ word this week!