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Quarterly Investment Update: Decisive inactivity
In the latest Quarterly Investment Update, Head of Market Analysis John Wyn-Evans looks back on the past quarter in markets. He focuses particularly on the past month, given the market-moving nature of the Iran conflict.
John explains that:
- We haven’t reduced our overall exposure to equities and other risk assets, although this is always subject to change
- Even decisions that appear to involve a degree of inactivity are given as much consideration as those that involve big portfolio reshuffles – if not more
- From hoping for more interest rate cuts from the US, UK and eurozone central banks, investors are now wary of possible increases
Investment Insights, our monthly look at what’s driving global markets
The April edition of our Investment Insights magazine contains the usual thought-provoking mix of market discussion, economic explanation and analysis of opportunities in a particular sector.
In this edition:
- The Iran conflict dominated markets in March, but as long-term investors, we’re not reducing our stock market investments
- Expectations for peak oil and gas demand have shifted further out, and geopolitics has highlighted the fragility of supplies
- The global economy is in an era of structurally higher and more volatile inflation, and relations between major global powers have become more confrontational
Weekly Digest: Flash to bang
As we publish our latest Weekly Digest, the Strait of Hormuz is still closed. We discuss in the Digest how for most of us in the West, the only real signs of disruption are higher fuel prices and
the odd cancelled long-haul flight. But the longer the Strait remains shut and the world is deprived of important supplies of oil, gas, and related products, the more we’ll notice.
Recognising this risk, we’re continuing to build resilience into portfolios.
We also look at how:
- Traders are building a bigger risk premium into oil prices
- Damage to infrastructure could complicate restarts to production
- In spite of this, global equity indices are close to their all-time highs
