global markets

Looking beyond trade wars and Brexit

An adage of equity investing during a US presidential election cycle is 'avoid healthcare'.

Anticipated downturns should not weigh on long-term decisions

Prudence required to navigate choppy waters

Global equity markets' abrupt sell-off, a fortnight ago now, emphasised equity markets' fragility in the latter stages of a mature economic cycle.

Now a well-chronicled global incident, on 9 March 2009 the S&P 500 index suffered the worst decline in value since the Great Depression.

Part of the June equity market rally was driven by growing investor expectation of a July rate cut in the US, which we believe is overdone.

Clouds of Brexit and trade wars still hang over investors

Red flags

Equity markets are being driven by the fact that bond yields have collapsed.