Investor News Quarter 2 2017; Future Outlook; A Return of Capital rather than a Return on Capital?
Posted by gifedit
Stock markets, in general, have continued their upward trajectory. Share prices, benefiting from the extraordinary monetary policy that Central Banks have implemented via Quantitative Easing, have now been on a bull run since March 2009, the second longest in history. There has been relatively little volatility in markets. Furthermore bond markets have been in a bull market for the last 3 decades, benefitting from falling interest rates, which are now effectively 0%. Cash is still yielding nothing. So where to from here? I think we are at the start of a new stage in the economic cycle, one in which there is more risk to the downside than of upside potential, and I would suggest that investment portfolios at this point in time should therefore be defensively tilted.