Arrow Investment Advisory Board | April 2018 Update

The announcement by the U.S. Government of its intention to introduce tariffs on the import of steel and aluminium is a concerning development for both equities and bond markets. Consistent with President Trump’s America First approach, the U.S. had previously dipped their toe into the protectionist water with the announcement in January of tariffs on washing machines and solar products. In absence of any immediate retaliatory response, the far more significant decision has now been made to impose tariffs of 25% on steel and 10% on aluminium. The President indicated the measures would be formally signed off during the week beginning 5th March and be in place “for a long period of time.”

The markets fell sharply in the first week of the month due to signs of inflationary pressures in the United States. President Trump has drastically cut corporation tax and many firms have passed the savings on to their employees in higher wages. Fears of inflation prompted worries that the Federal Reserve would tighten monetary policy in the US.

Guest speaker Rafiq Choudhury from State Street Global Advisers joined Peter Leggett to share their views on the current state of global investment markets as well as upcoming themes and trends to keep an eye on.

Arrow Investment Advisory Board | February 2018 Update

The above graph summarises the performance of the major financial markets and gives you an indication of how these markets performed over the last 12 months.  The graph does not reflect your actual portfolio performance.

2017 was a favourable year for investors with the global economic backdrop being highly supportive of further gains on share markets. Economic growth firmed across Europe, Japan and the United States, creating a rare synchronisation of improvement in the world’s major economies

Merry Christmas from the team at Arrow Wealth!

Global share markets made strong gains in November. US equities gained, supported by investor optimism that proposed tax reforms would improve corporate profitability. Contributing to the gains were yet more encouraging US earnings results, with the likes of Apple, Cisco and retail giant Wal-Mart all providing updates which beat analysts’ lofty expectations.

Arrow Investment Advisory Board | November 2017 Update

Global equities made further progress in October as several major indices set new record highs, while volatility reached an historic low.

Global equity markets turned in another strong quarter led by emerging markets as the global growth backdrop has overwhelmed any near-term geopolitical concerns.

September saw unrest in Spain, with Catalonia voting for independence. Whilst further damage was done to the Caribbean and the southern states in the United States as the hurricane season continued. One estimate now puts the repair bill in Texas at $180bn following Hurricane Harvey.

The traditionally quieter August period was rudely interrupted by an upsurge in political risk, led by mounting US and North Korea tensions and terrorist attacks in Spain. That triggered investor nerves, boosting volatility and pushing some market returns into negative territory. However, macroeconomic data was very positive, with stronger-than-expected growth registered in many countries including Europe, UK, Japan and Brazil, confirming that the global recovery remains solid.

The beginning and end of the month saw Kim Jong-un get a little feisty with two ICBM’s (Intercontinental Ballistic Missile) being launched. The Washington Post described the first test as ‘a grave milestone’ and the regime in Pyongyang claimed the second test brought ‘the whole of the US within range.’ At the beginning of August, CNN was reporting ‘unprecedented levels’ of North Korean submarine activity: the situation is likely to get worse.