David Bulteel

“Global economic conditions remain firm, with further recovery in Europe and Japan supplementing solid growth in the US. The downside of positive economic news is monetary tightening. Global equities have been strong this year but warning lights are flashing. Investor sentiment shows considerable complacency, as do the substantial levels of takeover activity; profit margins are historically high and productivity gains harder to achieve. Although we are not calling a top for markets, the economic and investment cycles are maturing, and our inclination is to reduce risk in portfolios. We will trim emerging markets in favour of the US.”