David Bulteel

“Equities continued their poor performance in January, as fears of weak economic growth or recession led to worries about falling corporate profits, particularly in the banking sector where visibility is poor. To help mitigate some of these fears the Fed cut interest rates but the UK and European central banks have been more hawkish in their outlook. With substantial bad news priced into the areas of greatest risk in the market, there appears to be value on offer if the world economy experiences a soft landing but the period of greatest risk is in coming months. With this in mind, a watchful approach is required.”