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Not so happy after all

Date: 10/12/2018
Category:

In last week’s piece, we noted that “Suddenly the world is a happy place again.”  Then of course, all of a sudden it wasn’t and equity markets, which had pushed sharply higher, promptly slid lower.  In many cases sharply lower.  The reasons were all the usual ones.  In the US, worries about trade wars and, in Europe, the endless political wrangling.

We still don't think that the end of the world is nigh.  The economic picture remains broadly healthy and we don’t see a recession looming large.  There will be data on US inflation this week.  This is worth keeping an eye on because we may get a hint about US interest rates peaking next year.  We say a hint because, rather like squeezing gizzards, none of these measures can ever give an exact picture of what will happen.

As we approach the end of the year, inevitably thoughts turn to next year and the great annual game of “What will happen?”  Will it be a good one, a bad one or another turbulent one?  Well, there is plenty to ponder on so we shall do exactly that and share our conclusions soon. 

For now, things are uncomfortable.  Experience tells us that bad times can be good times to put money into markets and we accept that plenty of assets are cheaper today than they were this time last year.  However, we remain measured and are especially mindful of the significant risks that are out there.

Regulatory notice


This message may contain information that is confidential or privileged. If you are not the intended recipient, please advise the sender immediately and delete this message. KW, KW Wealth, KW Protect, KW Wellbeing, KW Institutional, KW Partner and KW Private Office are trading names of KW Wealth Planning Limited (registered number 01265376), KW Investment Management Limited (registered number 06931664 ) and KW Trading Services Limited (registered number 03109469) which is a member of the London Stock Exchange.  Each of these companies is authorised and regulated by the Financial Conduct Authority and has its registered office at 13 Austin Friars London EC2N 2HE. KW investment Management Limited is also regulated in South Africa by Financial Sector Conduct Authority.  All these companies are wholly owned subsidiaries of  Kingswood Holdings Limited (registered number 42316) which is incorporated in Guernsey with registered office at Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 1WW.

Risk warnings


This message is not to be construed as a solicitation or offer to buy or sell securities and does not in any way constitute investment advice, nor should it be used as the basis for any investment decision. The information contained in this message has been prepared using all reasonable care. However, it is not guaranteed as to its accuracy, and it is published solely for information purposes. Our opinions are subject to change without notice and we are not under any obligation to update or keep this information current. The investments discussed in this message may not be suitable for all investors. KW Wealth does not guarantee the performance of any investments.  Past performance is not necessarily a guide to future performance. The value of investments may go up or down and you may not get back the amount you have invested. The income from an investment is not fixed and may fluctuate. The value of an investment involving exposure to foreign currencies can be affected by exchange rate movements which may cause the value of the investment to go up or down. KW Wealth and/or its affiliated companies and/or their employees may, from time to time, hold shares or holdings in the securities discussed in this message and may as agent buy or sell those securities.

Restricted investors


This document is not, and under no circumstances is to be construed as, an advertisement, or any other step in furtherance of a public offering of shares in the United States or Canada.  This document is not aimed at persons who are resident in the United States, Canada or any province or territory thereof, nor any other jurisdiction where such distribution would be contrary to applicable law or regulation

The value of investments and any income from them can fall and you may get back less than you invested. KW, KW Wealth, KW Protect, KW Wellbeing, KW Institutional, KW Partner and KW Private Office are trading names of KW Wealth Planning Limited (registered number 01265376), KW Investment Management Limited (registered number 06931664 ) and KW Trading Services Limited (registered number 03109469) which is a member of the London Stock Exchange. Each of these companies is authorised and regulated by the Financial Conduct Authority and has its registered office at 13 Austin Friars London EC2N 2HE. KW investment Management Limited is also regulated in South Africa by Financial Sector Conduct Authority. All these companies are wholly owned subsidiaries of Kingswood Holdings Limited (registered number 42316) which is incorporated in Guernsey with registered office at Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 1WW.