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Market Comment Q3 2019

Global equity markets have been strong over the first three quarters of 2019, with the Federal Reserve and other central banks easing policy in a coordinated fashion, and solid macroeconomic data in the USA.

MSCI Indices, Net Total Return USD9M 2019
All Country World16.2%
Emerging Markets5.9%

The main theme this year has been robust growth in the USA with weakness in Europe and especially emerging markets, fuelled by worries over the ongoing USA-China trade dispute. Equity valuations of many leading companies remain reasonable, with low bond yields offering poor competition to dividend yields. However risks related to a slowdown in US economic growth, Brexit, and socialist candidates for the 2020 US elections persist. As the saying goes, “bull markets climb a wall of worry”; we focus on capturing the long run outperformance of stocks by remaining invested, despite adopting a somewhat more defensive stance tactically.


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