Investment Markets Commentary to 30 June 2018
There has been a growing contrast between the stability of global growth and an increasingly unsettled mood in financial markets in the year to 30 June 2018. Company shares have continued to make progress over the last twelve months, but in 2018 stock prices and currencies have been reacting to events such as the security situation in North Korea, disruption in some derivatives markets, political uncertainty in the UK and Europe, and provocative statements on trade by President Trump. We have not changed our recommended asset allocation, as we still believe we are in an extended era of economic expansion, which will be rewarding for long-term investors. With many Central Banks around the world withdrawing stimulus measures put in place after the Global Financial Crisis (GFC) of 2008 / 2009, markets have lost an element of support and become more responsive to adverse short-term developments; however, we continue to focus on company fundamentals and longer-term prospects.