Stacey Ash

Geopolitical events, mostly emanating from the US, still dominate headlines, but underlying economic growth remains positive, as well as the outlook for corporate earnings. So, we look beyond these headlines, which may have limited effect on either, and focus on fundamentals. Valuation levels are not even both across and within individual markets, so diversification globally remains the best way of dealing with this. This also helps to reduce the impact spikes in volatility associated with the geopolitics. With central banks likely to continue a policy of easing, aside from Japan, this should help provide positive momentum. Whilst, bonds face challenges over increasing borrowing levels and an increasing lack of appetite for duration, this policy should provide a backdrop for yield like returns, as well as remaining supportive for equity markets.

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