global markets

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.

Markets continue to climb the proverbial wall of worry and the S&P 500 index was back into record-setting mode in April.

Follows UK investors' heavy weighting towards UK assets