This is a brief article given I wrote an investment blog post just a few days ago.
Standard Life Investments (SLI) are a respected investment company, unusually so for an asset manager borne out of a traditional life assurance company. They have particular expertise in managing UK equities including smaller companies.
Each quarter SLI publish a detailed market report. In the Foreword to the Q4 report they summarised perfectly my take on the global economy:
“The most acute (tension) is the deterioration in emerging markets’ economic and financial conditions– centred on China – that has put further downward pressure on commodity prices and inflation, and exacerbated the structural slowdown in global trade and manufacturing activity. This, together with heightened uncertainty surrounding the outlook for Fed policy, has triggered a spike in financial market volatility and a re-pricing of global risk assets despite resilient domestic demand trends in the advanced economies.”
At the end of the report SLI provided a house view on their preferred weightings to various asset classes, allocating a Light, Neutral or Heavy description. Like me they favour European and Japanese equities. Other Heavy allocations are to UK property and European bonds. Good advice from a company far from being standard.
This blog is intended as general commentary on the global economy. It is not an invitation to invest in specific markets or asset classes as these may not be suitable for your financial circumstances or your risk profile. You should seek individual advice before making investment decisions.