Report as at 30th September 2016
Most financial markets have recovered following the UK’s vote to leave the European Union (EU) in June, although political uncertainty remains a risk. Data shows that in the short term, the UK economy has been resilient. Unemployment continues to fall, consumer spending is buoyant, and business activity has been strong, particularly in the services sector. It is too early to determine the effects of Britain’s vote to leave the EU.
PM Theresa May announced at the Conservative Party conference in October that Article 50 of the EU treaty, which will officially kick-off Brexit negotiations, will be invoked before the end of first quarter of 2017.
Most financial markets have recovered following the UK’s vote to leave the European Union (EU) in June, although political uncertainty remains a risk.
UK equities and commercial property recovered strongly from their post-Referendum sell-off during the quarter, but the pound has continued to fall sharply.
While the FTSE 100 reached new highs for the year and the S&P 500 set a new record over the review period, the performance of different sectors has diverged sharply. Exporters have done well as they sell cheaper goods abroad, and as earnings are translated into more pennies and pounds in the UK. However, UK and European banks continue to hit new lows, as they struggle with regulatory fines, reputational fall-out and low margins in this ultra-low interest rate environment.
UK equities and commercial property recovered strongly from their post-Referendum sell-off during the quarter, but the pound has continued to fall sharply
Instead, in times of political instability and economic unease, we firmly believe that it is vital to retain consistent investment principles and a robust process. Despite the events of the past few weeks, we at Adam & Company have not, and will not, change our approach towards managing your money – though, of course, we remain alert to any opportunities the turbulence brings.
Please remember that the value of investments and the income from them may go down as well as up and that you may not get back the amount originally invested. Past performance should not be seen as an indication of future performance. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down.
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Any information contained on this webpage is believed to be correct, but is not guaranteed. Opinions constitute our judgment as at the date of issue and are subject to change without notice. Analysis contained on this webpage has been procured, and may have been acted upon, by Adam and connected companies for their own purposes, and the results are being made available to you on this understanding. To the extent permitted by law and without being inconsistent with any applicable regulation, neither Adam nor any connected company accepts responsibility for any direct or indirect or consequential loss suffered by you or any other person as a result of your acting, or deciding not to act, in reliance upon such analysis.
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