Hello,
European markets have opened sharply down this morning, and the selling looks set to continue in the US after lunch. To put it succinctly, investment markets have suffered material, sharp falls following the tariff announcements from President Trump. Markets detest uncertainty, and uncertainty is certainly evident within markets currently. However, sentiment is now negative in the extreme and as an active investment manager we continue to navigate these volatile markets. For example, in recent weeks:
- From an asset allocation perspective, we have reduced our equity allocation
- Within our equity book, we are allocating less to the US and more to Europe
- Allocated to longer dated bonds for the first time within Prisma
- Maintained a material allocation to Gold and Copper in applicable funds.
From a financial advice perspective, it is worth remembering that actively managing a financial plan does not always mean taking action.
To turn an old phrase on its head: ‘don’t just do something, stand there’.
It is an opportune time for us all to remind ourselves of the Principles of long term investment. Those investing for the medium to long-term should stick with their plan. We understand that many of you will be fielding calls and emails from clients. With that in mind, if you would like a direct update from Zurich please simply reply to this email or reach out via your usual contact to arrange a phone call or Teams meeting.
