Here at Reeves Independent we are always striving to keep up-to-date with investment opinions to ensure our clients get the best possible returns for their portfolios! Below is what the experts are saying about the next few months investment outlook
- Continuation of positive headlines – increased manufacturing output, jobless rate at its lowest for 5 years
- FTSE 100 index neared its best finish since late 1999 (13/05/2014),
- Bank of England (BoE) has upgraded its growth forecasts for next year, saying the economy “has started to head back towards normal”
- UK interest rates have been held at the record low of 0.5% for another month by the Bank of England to continue to stimulate the economy. However “with the UK economy growing stronger than pretty much every rich country, markets expect the BoE to raise its policy rate in the first quarter of next year” (Robert Peston, BBC economics editor)
- Commercial Property reports continue to be positive with upturn spreading through the regions due to the recovery of the UK economy
- European Central Bank (ECB) held interest rates, whilst President Mario Draghi hinted the bank’s policymakers may act soon to reverse the Eurozone’s prolonged low inflation. This is something that as previously stated needs to be kept an eye on!
- The gradual economic recovery remains on track, as consumer & business confidence indicators continue to be positive despite the ongoing unrest in Ukraine
- Returns have been muted so far this year in comparison to 2013. US equities are now underperforming many other global markets, nevertheless US equities are still seen to be very attractive, as the economic backdrop remains very supportive
- The US experienced an extremely cold winter & this did take a bite out of the US economic growth. However as the weather has improved, so has the economy, manufacturing performance have reaccelerated, job growth has bounced back & even retails sales have picked up
- Furthermore a continuing healthy housing market, a much clearer Fiscal outlook & a stable but low inflation environment also provide a favourable framework for equities.
Asia & Emerging Markets
- First quarter Chinese data showed that the economy continues to ease back again raising concerns whether growth will meet the government’s target level – therefore highlighting China may not be a short term investment option
- Experts believe that although Japan’s economic & growth drivers have lost momentum recently, further Bank of Japan (BoJ) easing remains likely therefore driving equities higher
- Within Emerging Markets there a continued concerns over politics, economic growth and reduced liquidity from the US tapering of Quantative Easing
- Reduced demand from China is a further concern to emerging markets within the Pacific zone
- India stock markets rose to record high following exit polls suggested the Bharatiya Janata Party (BJP) would be coming into Government. Will this reverse the slowdown of India’s economy?
- Patrick Schowitz (JP Morgan) “we continue to look for an acceleration in global growth, led by stronger activity in the US & Europe
- Fundamentals remain supportive of equities even though valuations are no longer attractive
So what does this mean for our Investors & Portfolios?
- Preserve UK investment – especially as previously stated in Small Caps
- Cautious clients should think about the continued positive reports regarding commercial property investment
- Maintain focus in the US
- Continue to remain cautious in Europe whilst the ongoing political issue rumbles on within Ukraine
- Potential for the brave in Japan as expert opinion points towards attractive prices to bring positive returns
- Unfavourable Emerging markets also give good value for high potential returns – once again for the brave
If you would like to discuss your portfolio please contact us now on 0191 281 9862 or e-mail firstname.lastname@example.org to arrange an appointment!