Monthly update: Markets fall across the globe

16 November 2018

By Sheldon Macdonald, Co-Fund Manager HC Verbatim Multi-Index Funds

As the dust settles, it seems that equity markets were hit more by a fall in global investor sentiment rather than any particular fundamental changes.

Investors were spooked by the prospect of rising inflation and interest rates and what that might mean for the earnings potential of companies. This led them to reassess what they are willing to pay to own a share of those future earnings.

Although we agree there are some concerns about markets and global growth prospects we believe the sell-off in equities has been slightly overdone.

As such we are taking the opportunity to add some risk to portfolios as we believe some markets now offer relatively good value on a long-term basis.

The value of investments and any income from them can go down as well as up and is not guaranteed. Your clients could get back less than they originally invested. Past performance is not a guide to future performance. The portfolios' investments are subject to normal fluctuations and other risks inherent when investing in securities. Verbatim Asset Management has taken due care and attention in preparing this document, which is solely for the use of professional advisers. Verbatim cannot be held responsible for any inaccuracies arising out of information detailed within and will not accept liability for any loss arising out of or in connection with its use.