We have seen double-digit returns in sterling terms from the S&P 500 year-to-date, a market that most strategists recommended investors to underweight for 2018.
We increased our weighting last year and continue to recommend that investors stay long. Earnings are strong and the increase in capital investment will boost productivity in the long term. The best way to protect capital is to buy assets when they are cheap and under-owned. The trade war rhetoric is damaging, but we expect the negative momentum will come to a head during September. If the trade tensions moderate, investors will refocus on the recent fiscal and monetary stimulus in China and idiosyncratic opportunities presented by the recent sell-off. The strength of the dolla...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
