I hope you are well, and again I’m writing earlier this quarter, so that you can benefit from the recent uplift in the American stock market.
This week marked a series of ‘all time’ highs in their stock market and this has helped boost the UK’s main FTSE 100, and enabled emerging markets to rebound.
However, what’s revealing is that both the US and UK stock markets have been here before, and then fallen back. So to make progress, you have to park some profit, from time to time.
I have recently returned from a trip to Chicago and the interesting thing was a boost in sentiment caused by Brexit, because this would slow down the rate of interest rate rises in the US. So there is a short term boost to sentiment supporting US equity values on the back of the continuation of cheap money, which gives you an opportunity to park some profit.
Perhaps more concerning is a growing sense in the US, that Donald Trump is a real possibility for President. In my talks with business leaders some even thought it would not even be close, with Trump winning by a large majority. There is a sense in the US that Hillary Clinton is not trusted, that we don’t see in the UK media.
Taking these things into consideration and with the US election only a few months away, the changes enclosed seek to continue along the path of providing some back bone and stability to your portfolio. They reflect the adaptability of our approach in taking some equity based profit, and protecting the downside, which help’s to manage risk, as we go through this interesting time.