Equities Market Perspective


  • Risk aversion continued in June, with the escalation in trade fears largely driving market weakness
  • Oil prices resumed their upward trend, supported by a favourable OPEC outcome and lower inventories
  • Gold failed to live up to its traditional safe-haven status, with the strength of the US dollar and concerns about the health of China’s economy driving it lower
  • The US was the best performing region whilst emerging markets and Asian equities trailed behind
  • Defensive sectors, in particular bond proxies, have been the laggards so far this year, but saw a change of fortune in June
  • Healthcare, consumer staples and utilities dominated performance over the month, whilst cyclical sectors lagged
  • Style performance was more mixed with risk underperforming across all regions
  • Theme: World Cup 2018 – who will win the Golden boot?
  • World Cup fever has captivated the globe and the tournament so-far, has been both riveting and full of surprises
  • We have also seen surprises in the equity markets, with bond proxies acting more sensitive than defensive during market sell-offs
  • Just like a game of football, no one can predict what will happen in stock markets, and there will always be upsets and shocks. Probabilities are far from certainties.
  • Success often comes to those who prepare and have a diversified portfolio – both offence and defense

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested. Where past performance is referenced, please note that this is not a guide to future performance.


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