Each month, the Reeves Investment Board publishes its Market Outlook. The Outlook looks at what’s going on in the capital markets around the world and walks you through our perspective on a variety of investment topics. It is the most widely read of all Reeves publications.
Our Outlook summarises our board’s most recent economic insights and market expectations. It will help you understand why we make the decisions we make with regards to our recommended portfolios. But you may still have questions and want to talk through things in more detail. If that’s the case, get in touch to schedule a call with one of our team.
FTSE 100 ends year down 12.5%
Global stock markets have had a turbulent 12 months, as investor confidence has been buffeted by trade tensions, uncertainty about the direction of the world’s economies, fears of a global trade war and a ratcheting up of interest rates.
If you want to read about investment topics covered in previous reports, you can access our archive below.
Outlook is worst since the crash, say bosses. The chancellor has suffered his first big setback since the budget as it emerged that confidence among businesses had slumped to its lowest level since the financial crisis.
At the beginning of the month, the FTSE 100 suffered its worst week since March after strong jobs figures in the United States worsened a sell-off in global equity markets. Investors are concerned that a wave of positive economic data from the US will prompt the Federal Reserve to raise rates faster than expected and increase borrowing costs, which could cool global economic growth.
Last month saw London's blue chip stocks fall to their lowest finish since April as the pound sharply reversed earlier softness, oil prices weighed and UK business optimism remained low amid trade and geopolitical tensions. At one point, the FTSE 100 was down to 7,229.75 (on 11 September), but has since recovered. The FTSE 100 reached an all time high of 7877.45 in May of 2018.
As predicted in our last Monthly Market Outlook report, the Bank of England raised the interest rate at the beginning of August for only the second time in a decade. The rate has risen by a quarter of a percentage point, from 0.5% to 0.75% - the highest level since March 2009.
London’s leading share index recorded its best quarterly performance in five years despite fears of an all-out trade war between the United States and China, but the pound suffered its weakest period since the Brexit vote.
During May, leading shares hit a record high. The FTSE 100 index closed up 53.77 points at 7,787.97 on 17 May, just breaching the previous record set in mid-January of 7,778.64. The FTSE 250 index also reached a record high, up 190.65 points on the day to 21,019.44.
We are pleased to report on our Q1 2018 investment performance results. Whilst there are always conflicting signs regarding economic growth and the prospects for investors, the Reeves Investment Team remain cautious in the current uncertain environment.
As the market has fallen by approximately 11% since its peak in January (as measured by the FTSE All-Share Index), we remain cautious about near-term prospects. We are consistently reviewing your investments on a monthly basis and will continue to make decisions aimed to protect or enhance your portfolio value.
Historically, January is typically a sobering month for investors. Since 2000 the average market return in January has been -1.6 percent! However, we are very pleased with how our model portfolios have performed in comparison to the index.
We are pleased with how our portfolios performed compared to the index!
Stock Markets struggles in November.
The Bank of England meet to discuss interest rates.
Investment Losses in Almost Every Sector.
Reeves Performance vs FTSE allshare.
Are Markets Overvalued? Is is it time to de-risk?
Surprise Election Result
FTSE 100 hit a record High
Overview of 2016
US Election Results
Inflation, Bond Yields
Real Estate Investment Trusts
Technology Funds, Absolute Return Funds
Property Fund Liquidity