Watch our video for the latest market commentary from Jon Cunliffe, Head of JM Finn’s Investment Office and James Godrich, Fund Manager.
- The UK posted sluggish economic growth in Q4 2024, The Autumn Budget did not land well with markets and borrowing has since been higher than expected. The interest that has to be paid on UK government bonds has risen, driving a preference for shorter-dated bonds in the JM Finn multi-asset portfolio.
- Eurozone growth has been lacklustre– it suffers from a challenging export environment, Germany is particular has too much production and not enough consumption. The European Central Bank appears likely to cut interest rates four or five times over the course of the year, which makes us more constructive about better economic growth in Europe in the second half of the year. In the meantime, there are some interesting bottom up stock opportunities available in the region.
- The US has put in a solid growth trajectory. There has been a big increase in in US treasury yields as a result of Donald Trump’s fiscal stimulus policies, which give rise to the prospect of even higher US treasury borrowing.
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.
