We hope you all had a wonderful Easter.
Please find below extracts from the IronMarket Investment Management Team Review of Quarter One 2019.
The steep falls seen in Global equity markets in October and December of the last quarter, were almost completely recouped in Q1 2019, as equity markets around the world recovered their poise to post the largest Q1 gains in 21 years. This reversal in fortunes was prompted by the US FED opting to ‘pause’ the rate rise cycle started in late 2015, due to concerns centered around a strong US $ and a weakening outlook to growth in the world economy.
The significant drawdown and the subsequent strong recovery in equities over the last six months serves as a stark reminder of where we are in the current market cycle. Equity markets are starting to look more vulnerable than they have for some time, especially given valuations have arguably recovered somewhat this year to date. Additionally, there remains a long list of factors which are eroding investor confidence.This month the IMF noted in its World Economic Outlook that global economic activity is slowing, caused in part by regulatory tightening in China, trade tensions between China and the United States and weakened consumer and business confidence in Europe. Additionally, political risks have increased; and debt levels remain elevated across government, corporate and household sectors. We believe that in the face of these headwinds and exogenous risks, portfolio resilience is now more important than ever. As we saw in the final quarter of2018, focusing on structural rather than cyclical growth is key to defensive performance. The fortunes of external factors, such as commodity prices, interest rates, or the economy, cannot be relied upon to sustain growth. We maintain discipline by investing in high quality companies at reasonable valuations, which continue to compound cashflows at attractive rates over time. Nothing has changed in terms of how quality companies can provide long-term outperformance, and thus we believe the opportunities provided by quality stocks remain attractive.
How did we Do in Quarter One 2019?
What does that look like?
All Portfolios Quarter One 2019
All Portfolios 1 Year – April 2018 to April 2019
All Portfolios Since October 2014
So, What Next?
The team at IronMarket InvestmentManagement meet at least monthly in a formal manner but work together daily reviewing & analysing market & economic data.
As part of this perpetual review process, they will be identifying and implementing changes over the coming quarter that, if suitable, best position your portfolios for the present and the future, across a range of risk parameters and aiming to offer outperformance without increasing risk.
Our next formal update will be inAugust, however, as always should you have any questions queries or concerns, please contact your IronMarket Financial Planner in the first instance, however as one group, our Investment Management Team are always available to offer further insight into anything related to your investment portfolios or wider economic or investment related queries.
Want to know more?
If you are not currently a client of our Discretionary Portfolio Management Service, and want to know more, again please speak with your IronMarket Financial Planner in the first instance who can discuss this with you.