As I write this quarterly update, it seems the Economy and markets have much in common with the weather – the rain is coming down now and then the forecast is for a mini heatwave next weekend!
So far this year, we have seen violent swings in markets from all-time highs during February in America to the fastest ever falls in March, and then back to highs in some places in July.
Our view is that this is what we will continue to see for at least the rest of the year. The pandemic has created havoc in Economies globally, with some industries absolutely devastated, and others prospering.
The key issue for investment we see is that it has accelerated the rate of change, particularly, in the use of technology. In recent years, we have been cautiously expanding your exposure to this arena and, as things change, it will be right to increase this further as long as we can invest at a sensible price.
The other key issue of this year has been the rate at which companies have cancelled, reduced or deferred dividends. This is most critical for those of you who rely upon the income from your portfolios, and our approach to this is twofold, firstly we are increasing your global exposure so that we can diversify your sources of income within the portfolio, and secondly, where necessary we will discuss with you individually as to the implications of this on your own portfolio and what action to take.