Very few of us expected that the UK stockmarket would be up almost 17% and global equity indices close to 30% in 2016. Of course much of this is down to the weakness in sterling, a reality that was discussed at length in the Neville household over Christmas as I made the case for 2017 being the year of the ‘staycation’. It is also a stark reminder that markets and stocks often find good reasons for performing differently to collective expectations in the short to medium term.
More recently equity markets have been supported by stronger economic data and the talk of ‘reflationary’ policies under the new President. This is leading to forecasts of stronger earnings, which are further supported for UK companies by the translation effect. However, it is not yet clear whether this will support ongoing strength in markets or allow valuations to return to more normal levels. Whichever the outcome there is likely to be more volatility, as the authorities shift their focus from the market palliative of monetary policy (low interest rates and quantitative easing) to more fiscal support (infrastructure spending), potentially exacerbated by protectionist rhetoric or European elections.
My sense is that whilst maintaining our focus on the longer term, we will also need to be nimble in addressing cashflow requirements or market opportunities. I look forward to seeing many of you at meetings and our events to discuss the progress through 2017.
Progress - A report from the annual Charity Investment Forum held at the Institute of Engineering and Technology
- We welcome Amy Browne, Portfolio Manager, and Michelle D’Arcy, Client Services Executive, to the team.
Amy joins us as a Portfolio Manager from GAM, where she looked after charity and private client investments. Amy began her career at Sarasin & Partners in 2010.
Michelle has three years’ experience in the industry and was previously an Investment Assistant at Ruffer and PAAMCO. Michelle has a BA (Hons) in Public Relations from University of Lincoln.
- Lucinda Napier recently became Chairman of the Cazenove Charitable Trust, taking over from Edward Harley.
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