Liam Goodbrand

Despite the plethora of attention-grabbing headlines highlighting poor economic conditions and scenarios, we remain broadly neutral on equity exposure and can see a path where momentum and earnings continue to grind higher over the coming 12 months. While momentum in markets is positive, we are keeping our finger close to the eject button in case data points start to turn. Ultimately, we don't know which drop of snow will start an avalanche, which is why we have kept a high exposure to gold assets (double digit %), which have not only provided safe haven status this year but have also been a source of growth with retail investors joining central banks in their purchasing.

The Trump administration has delivered on one of their agenda points, and that is devaluing the dollar. This has been a tailwind for sterling investors this year and while we expect the Greenback to trade rangebound for the next few months, there are clear signs of a structural bear market for the dollar and remaining underweight dollar denominated assets seems sensible. That also means a more positive environment for Emerging Market stocks, who have delivered good performance this year, and with current valuations relatively lower and fiduciary duty reforms in countries such as Korea being implemented, we see good reasons this can continue.

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