MJ Mad Dog

Tag: FTSE

  • Week 35 – October 26th 2020 – Week 32 of lockdown

    I was checking on my pension portfolio and was concern with the UK equities, was this down to Brexit.

    This was the response I received from my market financial advisor

    Global equities have been suffering over the last few weeks, as Covid cases rise across Europe and North America. The hopes for a further US stimulus package are dwindling ahead of the upcoming US elections. But all is not doom and gloom as we do not see a significant pull back in markets as existing stimulus measures remain in place.

    UK equities continue to underperform other markets as international investors shy away, given the uncertainty of the outcome of Brexit discussions. Also the UK FTSE100 has a high concentration of value stocks, in areas such as energy and financials, which are currently out of favour but history tells us that at some point there will be a mean reversion to value investing away from growth (IT companies) but when this happens remains unclear. We are currently 9.5% underweight to the UK market compared to the benchmark, with overweight positions to North America and Europe.

  • Week 27 – August 31st 2020 – Week 24 of lockdown

    Global equity markets continue to benefit from the unpresented levels of stimulus measures put in place by global central banks and the loose monetary policies being undertaken by Governments. With interest rates appearing that they will be kept at record low levels for the foreseeable future the environment for equity investing remains positive even though certain parts of the market (large technology companies) are looking fully valued.

    The expected result of the upcoming US election would normally be having a far larger effect on the markets but with the outcome too close to call, investors appear more focused on the recovering economy and the stimulus measures. A second term for Mr Trump should again be positive for equity markets with his business friendly policies, but even a Mr Biden win with his promises of higher taxes and increased regulation the outlook for shares does not appear overly dark.

    At this moment in time, Apple are worth more than the FTSE 100.

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