Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Economic overview and summary of our asset allocation decisions – March 2017

February was a strong month for global equity markets, with the MSCI World index reaching a record high. Improved economic sentiment, positive fourth quarter results and subdued volatility were all supportive factors for UK and US equity markets as they also reached fresh new highs.

Centre Chris Godding
22 March 2017

In the markets

  • While markets do not appear to be pricing in the uncertainties surrounding Trump’s presidency, the same cannot be said for euro assets, which were generally the laggards over the month as a variety of political risks weighed on market sentiment
  • Elsewhere, Asia and emerging market equities also continued to benefit from the positive market sentiment over the month. Credit and high yield bonds also did well, while solid returns for government bonds and precious metals reflected investors’ desire for quality and safety
  • The US dollar finished the month strongly, as market expectations shifted towards a sharper reduction in accommodative monetary policy from the US Federal Reserve (Fed)

Chart of the month

In this month’s chart of the month, we highlight the increased spread between 10-year German bund yields and 10-year French OATs (Government Bonds).

Read March’s market and economic update

Our full market and economic update explores the above topics in further detail. You can read it here today.

Important Information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested.

Past performance is not a reliable indication of future returns. This does not constitute a personal recommendation to invest. If you are in doubt as to the suitability of an investment please contact one of our advisers.