Ongoing concern over Brexit suggests favouring large-cap equities as higher overseas earnings will benefit from weaker sterling.

Post-brexit challenges remain with a weak financial sector potentially constraining growth. 

Earnings expectations lowered, but the market is likely to be more resilient.

Stronger yen will weigh on foreign earnings, while domestically Abenomics has not produced the growth or increase in inflation as desired.

Slower interest rate cycle in the US and better relative growth momentum will be more supportive to Asian equities.

Despite a boost from weaker currencies, domestically there are still many challenges, and externally a difficult outlook for commodity markets.

Core inflation is rising in the UK and US, with continual volatility in bonds expected.

Credit spreads provide some pick-up in yield but we prefer short-dated bonds.

Spreads have tightened giving potential for setback, but yields are still attractive (on a relative basis).

Domestic inflationary pressures are rising (UK and US), while commodity inflationary impact is turning positive.

Increased volatility and dispersion should provide opportunities.

Lower liquidity and flatter rate profiles reduces the attractiveness of many strategies.

Increased volatility across many asset classes should counter flatter rate cycles.

Post-Brexit concerns have resulted in the marking down of property but income characteristics are still attractive.

Uncorrelated income continues to be attractive and in demand.

Gold has continued to act as a diversifier and as portfolio insurance.

Ongoing excess supply is likely to weigh on prices for some time.

Oil continues to be volatile as politics and supply concerns dominate the market.

Cash has defensive and opportunistic qualities in uncertain and volatile markets.

We are neutral on the US dollar overall however there is potential for further weakness in sterling.

Post-Brexit concerns and the trade deficit weigh more on sterling than euro.

Abenomics continues to struggle although in the short term the yen could benefit from US election uncertainties.

A dovish Fed tightening cycle may reduce pressure on Asian currencies.