A perfect storm in September and October?
Our investment strategy has followed a cautious approach since the third week of January, and will continue to do so. We recommend equity exposure of no more than 30% to 35% as part of a balanced strategy.
We are anticipating an abundance of negative news for September and October, with disappointing macroeconomic data from the USA, Europe and China, alongside the burden that persistently high energy and food prices place on private consumers. It is also perfectly possible that the Ukraine conflict will escalate further and that the pandemic will flare up. It is rare to see uncertainty piling up in this manner: this is reason to take an exceptionally cautious approach. A high level of liquidity and a substantial allocation of alternative investments should stabilise portfolios, even in such challenging times.