We know from conversations with some of our portfolio investors and financial advisers that the investing UK public is currently almost entirely focused on every twist and turn of the Brexit drama. However, with the ‘back-stops’ which parliament has forced upon the Brexit-determined Johnson government, there is in our view still only a fairly low probability that the ongoing process will lead to an economically disruptive no-deal withdrawal scenario. Until matters become clearer on that front, global developments are therefore far more relevant for professional investors
For the last four weeks, we have been saying that markets are broadly in balance. Equities have gone as far as the current economic environment will let them while yields are no longer declining to push up their relative attractiveness any further. And from here on, we will need to see an improvement in the underlying economy to see markets push higher. Fortunately, this week saw the release of some key data points which help us assess the health of the global economy. Unfortunately, they pointed in very different directions. We are seeing considerably diverging fortunes in two of the world’s most important economies: the US and China.
Tatton Asset Management PLC (LON:TAM) offers a range of services to directly authorised financial advisers in the United Kingdom. The Company provides on-platform portfolio management, regulatory, compliance, and business consulting services.
