Financial Market Overview – January 2018
BY HAIG BATHGATE, JOINT CHIEF EXECUTIVE OFFICER & CHIEF INVESTMENT OFFICER
& ROBIN KYLE, INVESTMENT MANAGER
Although devoid of the once-in-a-generation macro events that came to define 2016, 2017 marked another challenging year for investors. Markets have continued to rise but there exists a growing recognition that the cycle nears its conclusion. In the absence of an immediate trigger, the divergence in sentiment between bulls and bears has rarely been greater. The former await one last hurrah, while the latter anticipate the correction.
For our own part, client portfolios remain fully invested. Asset allocation is increasingly defensive and we are continuing to make use of explicit portfolio protection where appropriate. In this edition of our Financial Market Overview, we have set out the logic for this positioning by reference to what
we perceive to be the key storylines into 2018 and beyond.