Five key points
A prolonged period of low volatility across all asset classes and positive performance trends across the majority of investments since the new year has created a well-needed pause for breath.
Psigma has been extremely active in its portfolios: taking profits, refocusing on high-conviction assets and preparing for bigger battles ahead.
The global economy is currently enjoying the first synchronised expansion since the start of this decade. However, first-quarter growth rates in the US and the UK are set to slow, while Europe is doing better than trend growth levels, Asia hums along nicely and China confounds sceptics.
The European Central Bank, Bank of England and Bank of Japan have taken a more hawkish approach on interest rates recently, from a low base. There is a question over whether the equity and credit markets have factored in this change in stance.
The game is not up for the equity bull but the air it’s breathing is thin. It may go higher but timing and tactics become more important at these levels.
