Omicron raises major concerns for governments and corporations, but markets so far appear relatively relaxed. Our generally cautious view seems more than justified in this context.
Persistent concerns about China have led us to reduce the exposure of certain portfolios. We may still see a rapid recovery in the Chinese market, but the lack of transparency and the lingering risks make it, for now, more like an idea for adventurous investors. Otherwise, exposure to global equities remains unchanged.
The UK now faces a potentially very serious situation regarding Omicron and the economy will likely be held back if further restrictions are introduced. Yet these problems are not unique to the internal market and current allocations seem reasonably sized for all but the worst outcomes.
Given the uncertainties surrounding the direction of monetary policy and financial markets, our specialist allocations appear to strike a solid balance between ideas of growth and value and access to areas that offer both protection and opportunity. interesting growth.
It’s only natural to worry about the bond space given the inflationary threat, but markets appear stable after the Federal Reserve’s latest announcement. This month, we are reducing our holdings of emerging market debt for balanced investors with convertible bonds as the beneficiaries.
Real estate and infrastructure should both offer some security in a more inflationary environment, our allocations seem sufficient.
Allocations to alternative and protective strategies remain unchanged this month.
Slightly increased this month due to reduced exposure to China. We will look to reinvest the proceeds in the new year.
Mattioli Woods plc published this content on December 17, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on December 17, 2021 03:38:02 PM UTC.