Watch our February market update video from Head of Investment Office Jon Cunliffe and Fund Manager James Godrich, covering:
- Market performance: the US underperformed in January, while Europe and the UK did well due to stabilising growth expectations and broadening corporate earnings delivery.
- Bond market movements: yields rose in the first 10 days of January due to reflationary policy and concerns about US debt sustainability, but then fell back down due to better inflation data.
- Gold positioning: gold can play a role as a diversifier in portfolios due to its lack of correlation with other asset classes.
- Market outlook: reasonably strong nominal GDP growth is predicted alongside good corporate earnings delivery and broader positive returns across asset classes, regions, and sectors. Some volatility is expected due to geopolitical tensions and trade uncertainties.
The value of securities and their income can fall as well as rise. Past performance should not be seen as an indication of future results. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
