Podcast: Investing in volatile markets
Over the last week, we have been receiving questions from clients asking just what’s happening in the markets at the moment. There has of course been increased volatility after the EU referendum result and in our latest podcast Gillian Kyle from our communications team asks Director of Investment Strategy Marcel Porcheron some of your most common questions.
Why the sell off and bounce back?
Marcel considers the movements of the FTSE 100 versus the FTSE 250. He also explores how sterling in particular has felt the reverberations of the vote in the podcast.
Marcel looks across the main asset classes and notes how equity markets in particular were complacent going into the EU referendum vote.
What’s going on in commercial property?
The commercial property sector is one of the areas showing signs of stress following the vote to leave the EU. Marcel explains how things stand now and gives our view. A number of physical property funds have had to stop redemptions from their funds, which means as an investor you aren’t able to get your money out of the fund immediately.
Gating the funds is a sensible step designed to protect investors in the event of large outflows from the funds.
What are our long-term views?
Many of the current challenges in the markets date back to the global financial crisis of 2007-2008, which saw some of the excesses in the global economy cleared, however we are now left with the consequences of unconventional Central bank policy.
In the podcast Marcel delves into this further and answers what drivers of markets are shaping 2016.
For an in-depth consideration of all of the above, as well as Marcel’s view on gold and the difference in performance of large companies versus smaller companies, listen to our podcast today.
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This article does not constitute personal advice. 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.
Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. If you are in any doubt as to the suitability of an investment, please contact one of our advisers. Past performance is not an indication of future performance. Please note we do not provide tax advice.
The property market can be illiquid; consequently, there can be times when investors will be unable to sell their holdings. Property valuations are subjective and a matter of judgement.
Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing. Current or past yield figures provided should not be considered a reliable indicator of future performance.