Head of International Portfolio Management, Shaun McDade, discusses the strength of the 4th quarter of 2019 and whether this is likely to continue into the new year.

Chapters:

4th quarter review: 0:00 – 07:54

  • Positive movements across most asset classes: equities, credit, commodities
  • Archetypal ‘risk-on’ quarter
  • Major events / non-events:
    • Positive resolution to trade dispute between US and China in form of the signing of Phase 1
    • Lack of nasty surprises in the macro data
    • UK General election produced a conclusive result – uncertainty around Brexit removed
  • Safe haven assets, including core sovereign bonds, struggled

 

Current situation: 07:55 – 11:30

  • DM equity valuations on the wrong side of fair value (not to an extreme level)
  • Broadly bonds remains expensive
  • There are nuggets of value

 

Where to from here: 11:31 – 16:04

  • Positive outlook – structurally markets are well supported
  • Accommodative monetary backdrop remains (Fed, ECB, BoJ, PBoC)
  • High levels M&A
  • Equity share buy backs
  • Short term volatility remains a threat

View the written the Quarterly Commentary for Q4, 2019


The content of this interview is for information purposes only and does not constitute an offer or invitation to any person. The opinions expressed are subject to change and are not to be interpreted as investment advice. You should consult an adviser who will be able to provide appropriate advice that is based on your specific needs and circumstances. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable and given in good faith, but no representation is made as to their accuracy, completeness or correctness.

Address

MitonOptimal Portfolio Management (CI) Limited
PO Box 354,
St Peter Port,
Guernsey,
GY1 3XF

Phone

+44 (0)1481 740044

Regulatory Information

MitonOptimal Portfolio Management (CI) Limited (Registration No. 36763) is licensed and regulated by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended.

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