Market sends contradictory signals - GSFM

25 July 2019
| By Chris Dastoor |
image
image
expand image

The investing landscape will remain uncertain for the rest of 2019, particularly with bond and equity markets sending contradictory signals, according to GSFM and its partners Munro Partners, Payden & Rygel, and Tribeca Investment Partners.

Stephen Miller, GSFM adviser, said diversification in portfolios was important given the high level of uncertainty.

“In the near-term, investors need to grapple with ongoing trade tensions, potential ‘currency wars’, political dysfunction and escalating tensions in the Middle East,” Miller said.

Nick Griffin, Munro Partners chief investment officer, said the outlook for global markets was uncertain with trade tensions continuing to dominate, with the last nine months being a period of heightened volatility.

“The key risk to this outlook is that sub-par growth ultimately turns into negative growth as policy missteps continue to escalate,” Griffin said.

However, he said this environment would actually favour growth equities, because low interest rates meant investors were attracted to and prepared to pay more for scarce growth assets.

The Munro Global Growth Fund seeks to find these scarce growth assets by identifying some of the key structural changes in the world today and the resulting investment beneficiaries,” Griffin said.

They expected US gross domestic product (GDP) to slow, while growth in China and Europe would stabilise in H2 2019.

They also expected the Federal Reserve in the US to lower rates in order to foster economic growth and sustain the cycle.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago