Conventional market wisdom holds that the cold and damp of autumn usually heightens the probability of downside volatility in markets – particularly when the economic outlook is unclear. The last quarter of 2018 was a prime example of this. Fortunately, no one seems to have told the markets. The waning of summer only saw the markets’ upward momentum briefly disrupted during October, with stock indices around the world now sitting at highs, not lows, for the year – this is despite an economic and political outlook still plagued with uncertainties.
Perhaps we should not be surprised. The recovery in market sentiment we have seen this year has certainly propelled equities to new heights in nominal terms, but in terms of valuations (share price levels as a multiple of annual earnings per share) we are merely back to where we were before the almighty sell-off at the end of last year.
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.