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The world is a happy place again

Date: 03/12/2018
Category:

Suddenly the world is a happy place again.  Equity markets around the world have pushed sharply higher.  Oil has bounced and even gold is higher.  Why all this sudden good cheer?  Well, much of it is the result of the meeting between Trump and Xi in Argentina.  Inevitably, different observers have their own take on what it all actually means and, in global terms, it’s probably not that big a deal.  But in terms of soothing the somewhat frayed nerves of investors, albeit perhaps temporarily, it is just what was needed.

The epic saga/sorry tale of Brexit trundles on and on and on.  Talk about fatigue – it’s a wonder even the politicians can summon the energy to continue.  Normally viewed as frowsty, even the Bank of England has joined in through its Governor, Mark Carney, with comments described by some as “Project Hysteria”.  It’s not going to go away sadly since the reality is still nothing has been finalised.  We remain comfortable with our current positioning against this background.  Despite the risks to the UK equity market and, in our view, particularly to the pound of a no-deal exit, our international equity positions far outweigh those in the UK and so should provide an effective counterbalance.

As we have mentioned before, we have begun a ‘journey’ in terms of our programme of de-risking portfolios now that we are in the wealth preservation phase of the market.  We continue to have this in the forefront of our minds as we approach the end of the year.  At the moment, our expectation is that, whilst we will be retaining our overall equity allocation, we may well reposition it.  Such moves may include reducing some of our longer term exposure to smaller companies where we see opportunities to sell into strength.  This does not reflect an impending crisis, but is a measure of our determination to maintain a prudent approach to protecting our clients’ wealth.

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.