Market Volatility Update

You may have noticed a bit of market volatility at the moment. We are hopeful that this volatility is short-lived as well as presenting us with further opportunities to invest.


The key issues impacting markets at present:

  1. The uncertain political climate – Trade wars, Brexit.

  2. Rising bond yields impacting on valuations especially for growth stocks which have enjoyed strong momentum.

  3. Some concerns the rising rates will impact on the economic cycle, although there has been limited evidence to date.

  4. Impact of rate differential between the US and other countries is placing pressure on our currency and pressuring emerging countries.

Following a strong run over the past number of years, it is always difficult to pick a bottom in these types of pull backs which are based on a valuation de-rating. The pullback is around 6.5% top to bottom, which is not into correction territory but represents a reasonable pullback. 

Overall we think your investments are very well placed to weather the volatility over the coming days.

As always, if you have any questions please let me know

Janet Boland