QuotedData’s economic round up – April 2018 is a collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned. Kindly sponsored by Polar Capital
Stock markets have suffered their first meaningful fall for nearly two years. At the quarter end, the FTSE 100 index was down nearly 10% from its January peak of approximately 7800.What looked like good news about the strength of global economies was taken as signs that inflation was on the rise and interest rates would have to rise. Politics, trade wars and protectionism collectively contributed to the market correction.
Concerns remain about valuations, inflation, the end of QE and geopolitics.
In April 2017, the heading for this review spoke of high valuations, bond yields and inflation. The heading above in April 2018 is very similar, although the world has certainly moved on. The chairman of ScotGems, William Salomon noted that their investment manager has been cautiously deploying cash at today’s high valuations. They prefer to wait to invest when valuations become more attractive. The chairman and investment manager of Murray International Growth both comment on the excesses that have been built up by the accommodative strategies of policy makers since the financial crisis in 2018. Chairman Kevin Carter states that whilst central banks seek to return conditions towards something approaching normal, the company will proceed with patience and caution. Investment manager Bruce Stout goes into far greater depth and states that Addictive behavior seldom produces positive outcomes.
QuotedData’s economic round up – April 2018