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Rathbone's Market Commentary

Posted Thursday, 28 July 2016, 3.30pm

Murky waters ahead but it's not all gloomy...

Right now, looking ahead is murkier than trying to spot a fish in the Thames. Making predictions is about as enticing as jumping in for a swim…


That doesn’t mean we’re gloomy. In fact, we’re relatively positive about the prospects for risk assets over the next two years. The Bank of England is gearing up to ease its monetary policy and it may even deliver another bout of Quantitative Easing. Meanwhile, the popular discontent that propelled Mrs May to the top job has been heard loud and clear: New chancellor Philip Hammond has alluded to a package of infrastructure spending to improve the nation’s ailing transportation networks and try to stave off economic contraction.
However, in the short term we’re probably in for a bumpy ride, particularly if Germany and France go in for some boisterous posturing ahead of their upcoming elections. We retain our bias to the US and Japan for now, and our underweight to Europe. At least until the murkiness clears.

 

David Coombs, Head of Multi-asset Investments, Rathbones

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