It has been another reasonable week for risk assets, especially equities. At the time of writing, markets around the world are within a percentage point of last week’s highs. In the US, large cap stocks are floating just off the all-time highs. Meanwhile, the global economy continues to look lethargic, and political headwinds aren’t making things any easier. In the US, the quarterly earnings season is expected to reveal the first corporate earnings recession since 2016, and Europe’s company statements indicate a similar picture. Around the world, trade wars, Brexit and other issues threaten growth.
Investors are choosing to look past this and focus on the positives. Monetary policy looks set to get more accommodative and many expect the soft patch for global growth to be ending. Despite the current troubles, a rebound in corporate earnings is expected before the end of the year.
Tatton Asset Management PLC (LON:TAM) offers a range of services to directly authorised financial advisers in the United Kingdom. The Company provides on-platform portfolio management, regulatory, compliance, and business consulting services.
