Economic Commentary

Showing 6 of 11 articles

Market Commentary: July 2018

Financial markets were once again led by the US, where economic and corporate data continued to impress. Retail sales, unemployment and business surveys all pointed to continued expansion for the world’s largest economy. Inflation rose to 2.9% in June, which is above the Federal Reserve’s target and further interest rate rises are...

Market Commentary: May 2018

Once again investors showed their willingness to ignore geopolitical tensions and instead focus on fundamentals. The US administration’s aggressive approach to global trade dominated headlines, while Italy’s new eurosceptic government added to market concerns. But it was excellent corporate earnings in the US and a strong dollar which had...

Investment Commentary: April 2018

The tone and mood of financial markets in April was very different to that witnessed in the first quarter. Rising US Treasury bond yields triggered a sell-off in risk assets. In April, we saw the 10-year US Treasury notes breach the 3.0% mark for the first time since 2011, but little reaction in equity markets. In fact, we saw very strong...

Investment Committee Update: Reducing Risk

Last month we ran through some of the rationale for including US Treasuries into our portfolios. The position was taken both as means to enhance returns but also reduce risk. A second and perhaps more significant move we have made in our portfolios this year is to reduce the overall equity exposure. The reduction was not large, amounting to...

Investment Committee Update: US Treasuries

One of the key changes we have made in 2018 has been the inclusion of United States government bonds to the Flying Colours portfolios. The investment enhances the profile of our portfolios in several ways and I would like to share some of these with you. Firstly, and most obviously, the US Treasury market is offering investors a superior...

Market overview: First Quarter 2018

The first quarter of 2018 was challenging, with equities and fixed income both enduring a difficult period. Under the influence of widespread headwinds, there were few areas of the market that protected investors capital, although traditionally defensive assets like UK gilts and cash were flat over the period. What is interesting is that the...

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