Monthly Update: Markets fall again in December

14 January 2019

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

Equity markets were down substantially at the end of last year to finish a pretty difficult few months. 

US and Japan were the biggest fallers in December, but even the best performing markets, such as Asia, still delivered negative returns. Fixed income assets did offer some relief as UK and global government bonds were both up by a couple of percent.

 Markets were concerned about rising tensions again between China and the US. Added to this, economic data is starting to show that global growth in 2019 might not be quite as strong as previously predicted. There are also some suggestions that company earnings, particularly in the technology sector, might fall below expectations.

Economic data remains mixed, but given markets had experienced such a long, positive period a correction was due at some point. This does mean that company valuations are now arguably more attractive even if risks to the global economy still persist.

 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. This article is for information only and should not be deemed as advice.