January market surge indicates healthy rally


we are pleased to share the latest edition of our Investment Insights.

  • January’s market surge has all the signs of a healthy rally rather than a “last-gasp blowoff” heralding a major correction, as many are suggesting
  • we expect further strong gains in equities in the coming months and remain fully overweight
  • our main change at the start of January was to go long the Euro / remove the US-dollar hedge on our European equity exposure. The Euro has rallied 2.5% in January, vindicating our positioning
  • we remain neutral in fixed-income: we believe bonds are vulnerable, however intermediate-term technicals are supportive
  • we will continue to add Green / ethical ETFs as and when their liquidity is sufficient
  • we remain vigilant for early-warning signals suggesting the long-run equity bull market is over. These are not currently present