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Investment Thoughts

As we move into the second half of the year we do so with some excitement for the ability to enjoy a hot summer, as the Government looks to lift the majority of remaining restrictions on July 19th.

In terms of vaccinations, 45 million people/ 86% of the UK population have received their first dose and 34 million people are fully vaccinated, having received their second. This uptake in the vaccine provides strong grounds for businesses to reopen and become less dependent on the support the Government has provided, which will give businesses more room to deal with the complications of the Brexit trade deal, which are still ongoing.

After a strong recent run, we expect stock market volatility to remain with us as economies around the world start to reopen with restrictions lifted but with that the expectation of inflation rearing its head, after being dormant for many years. Central Banks around the world are of the view that the inflation we are seeing is “transitory” and it will continue to remain subdued after this year, as the world economy finds its feet again. We currently share this view but, will keep a close eye on it, for signs it is becoming more entrenched.

Our own portfolios have given a strong relative performance over the last six months having been a little slow to take off into the initial recovery last year, which has vindicated our long-term level headed approach and, in not always following the herd.

We continue to take a global and long-term view for your portfolios and remain diligent in our research to ensure that where you are invested continues to be in companies with sound business models, good financials and accountability in terms of environmental, social & governance track records with the strategies to improve them.