Monthly Update: Markets rebound in January

20 February 2019

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

‘There was a strong rebound in markets in January following a tough period for investors at the end of 2018.’ - Sheldon MacDonald

Last year we saw global equities suffer significant falls but markets are now in fact back to a similar level to where they started 2018.

While there was some negative news late last year, we felt markets had overreacted. Investors were concerned about slowing global growth following several worse-than-expected economic data releases. However, the US Federal Reserve has now indicated that it sees interest rates rising less than previously expected; this will put less pressure on US economic growth in the months ahead.

As economic growth expectations were revised down, so too were company earnings forecasts, which further added to the weakness. But expectations are now less demanding, and several companies have now reported figures ahead of the lower expectations, which has helped buoy investor sentiment.

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.