Matthew Strachan

Stock markets have entered the new year in a glass half-full mode, with further rate cuts expected and global fiscal stimulus to build on last year's economic resilience. Although companies have, by and large, coped well with tariffs and a host of other uncertainties, valuations leave little room for these to cause problems down the road. We remain fully invested in equity, but will continue to skew away from the US while the threats to its institutional underpinnings remain elevated. With governments largely unable or unwilling to get their fiscal deficits under control, we remain wary of longer duration bonds. Alternatives remain our preference to diversify portfolios and manage risk, which remains elevated. Gold's run in this environment looks extended and we will reduce our weighting, but keep a decent exposure.

‍

‍

‍