You have probably noticed that share markets have been increasingly volatile in recent weeks- all around the globe. It’s hard to avoid the headlines.
The reason for the recent falls are a combination of factors which have been building in markets. Trade disputes, emerging market challenges, potential inflation risk, threat of slowing corporate profits, but what has really set the market off is rising bond yields.
We’ve attached an article that we think gives a pretty balanced view. The overarching message is that markets were due a correction, the underlying economy in the US is strong (which is so pivotally important to global share markets continuing to grow) and the most significant factors that could derail economic growth (being too much wage growth and inflation), are not currently pressing issues.
The current share market is into its 10th year now and it’s likely that volatility will be more common than we’ve grown used to. We are alert but not alarmed by this, but we expect we will be transitioning our client portfolio's into a more defensive position in the foreseeable future.
Yield Financial Planning have an active investment committee made up of James McFall (Managing Director of Yield); Ben Brockhurst (Stockbroker at Harting Private Wealthg); and John Kounadis (Head of Research at Lifespan Financial Planning) and together we regularly monitor and manage our clients portfolio's throughout the asset cycle.
In addition to this, we help our clients manage their investments to meet their personal short, medium and long term goals.
If you would like to discuss how Yield can help you manage your investments proactively, please don't hesitate to contact us.