Don't be swung by daily market moves

ON ASSET ALLOCATION

Santander's Toby Vaughan explains why events in the Middle East and Japan will not affect the medium-term outlook for the global economy.

Over the past month, fundamentals and the global economic cycle have been overshadowed by the potential impact of tensions in the Middle East, rising oil prices and the tragic events in Japan. Unsurprisingly, volatility spiked and risk assets have come under pressure. It is important not to be overly swung around by daily market moves and newsflow, and maintain a focus on the impact events have on the global economic and corporate earnings cycle. Our view is the medium-term outlook is intact. However, over the past month, a proactive response was required to ensure active risk levels...