With the ever-changing Pandemic causing severe disruptions to our lives globally, we understand that the health and safety of yourself, your friends and family will be your top priority. However, we are here to support you through this time and offer help and advice for your financial circumstances, looking to give you peace of mind in this aspect of life at least.
From an economic standpoint, the FED’s proposed $2tn stimulus package caused global markets to surge this week, while the UK governments promises of financial support added to the more positive market sentiment. The FTSE 100 increased by 16.5% in three days (23 – 26 March). Realistically, this is unlikely to be enough on its own to be the catalyst for the major recovery, with global cases still rising and the real economic impact of the pandemic is still not fully understood.
With the current market volatility as circumstances change daily, our strategy for Tactical clients is to enter the market in a three-phase process in a move to protect clients from drastic day changes in the market. We are doing this to capitalise on the falling markets with lower prices while leaving ourselves room to move again if the markets fall further, as we cannot predict when the markets have reached their lowest point.
Our Core clients will be receiving new proposals in the coming month to alter the asset allocation based on the current economic climate. Our plan is to increase the equity exposure to become more aligned with the benchmark and to allow the Core clients to benefit from any market recovery over the next twelve months.
On a more positive note, all of Reeves Core and Tactical portfolios have outperformed their respective benchmarks since the start of the year and are currently sitting much higher than the FTSE 100. This outlines the importance of the diversification Reeves offers, with portfolios spread across various asset types and several regions across the globe, safeguarding clients against even harsher drops.