QuotedData’s economic roundup – February 2019
QuotedData’s economic roundup – February 2019 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.
Roundup
Most stock markets moved higher in January, reversing some of the losses they suffered in December. Emerging markets did well with the exception of India which was affected by a rally in the oil price and worries about economic growth rates. Sterling edged higher but many investors in the UK appear to be sitting on their hands waiting for a resolution of the Brexit negotiations.
Global – Caution advised as volatility returns.
Richard Killingbeck, chairman of Bankers, suggests that we will have to adapt to more normal (higher) levels of volatility, as quantitative easing is unwound, and hopes for a clearer picture in the second half of 2019. The manager of that trust points out that there is an incentive on all sides to resolve trade disputes. The managers of Aberdeen Diversified Income & Growth think that US valuations look high and note that worries persist about slower growth in China. They like the look of emerging markets bonds.
UK – The path to Brexit is as unclear as ever but, perhaps, investors’ fears are overdone.
Japan is sensitive to a Chinese slowdown and also faces a hike in consumption taxes
Brexit overshadows the UK property market but niche areas may be less affected
We also have comments on the US from Baillie Gifford US Growth; global emerging markets, from Jupiter Emerging and Frontier Income; Russia, from JPMorgan Russian Securities; and resources, from BlackRock Commodities Income.