“Despite volatility, stay focused on equities”
Investors entered 2018 optimistic following the stellar returns across most asset classes in 2017. However, at UBP, we cautioned that more limited – though still positive – performances were likely in 2018. As we enter the summer, despite volatility in global equity, fixed income and foreign exchange markets, equities have gained a modest 2.6% while bonds have dragged -1.4% as interest rates have risen and credit spreads widened.
Our focus on risk management in the fixed income arena has proved prudent. Insurance-linked ‘catastrophe’ bonds and structured credit have provided attractive alternatives for investors who benefitted in past years from the gains in high-yield bonds.
Brexit referendum brief review
In this paper, we will take a closer look at the current environment in Europe two years after Brexit referendum, as well as state of European companies and corporate activity to finally explain why our pragmatic investment approach could be the most suitable for what seems to be a tricky year.
Global Tactical Asset Allocation