The value of investments and any income from them can fall and you may get back less than you invested.

Markets in a Minute – May 2019

Share

Markets have endured their first negative month in 2019 after a blistering start to the year.

The major source of anxiety has been the escalating trade tensions between the US and China.

President Trump’s tweet on 5 May revealed the US administration intended to both raise tariffs on goods already suffering a penal import duty and levy additional tariffs on new products.

An additional source of concern is that US consumer goods will be more impacted by these additional taxes, raising the prospect of reduced spending from this crucial source of global demand.

China is responding in typically robust fashion. Via state media, the leadership is readying the population for a ‘Long March’, a reference to the huge sacrifices made by the Communist Party in efforts to ‘liberate’ China some 80 years ago.

The immediate impact of these new taxes and countermeasures still only scratches the surface of global trade, but fear of further escalation or the involvement of peripheral countries is weighing on investor sentiment.

Despite the heightened level of anxiety plaguing markets, history suggests using geopolitical strife as a driving force behind any investment strategy would result in poor outcomes for clients.

What is more, given the prospect of being showered with plaudits for securing a deal – whether from the press or himself – as he heads into a presidential campaign, the incentives for Trump to do a deal are very much there.

There is also the high probability of a more concerted effort from China to stimulate its economy in the face of failing negotiations.

Brewin’s Asset Allocation guidance did not change over May, reflecting our more measured approach to dealing with geopolitical events relative to those factors which might genuinely have more impact on the economic cycle.

 

The value of investments can fall and you may get back less than you invested. 

Past performance is not a guide to future performance.

We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website

Your next steps

Manage Your Wealth

Start a conversation

Find out how we can help guide your wealth journey, by requesting a callback from a member of our team.

FIND OUT MORE
CLOSE

REQUEST A CALLBACK

I am ready to start a conversation

Find out how we can help guide your wealth journey.

We will match you to the Brewin Dolphin office that is closest to your Post Code for your initial conversation.

Please select if you would like to choose a Brewin Dolphin office other than the one closest to your post code.

Understanding your level of wealth will inform our conversation about which services would be most suitable for your circumstances.

Are you a Brewin Dolphin client?

We respect your privacy and take protecting it very seriously. We will only use your data in order to arrange a meeting to discuss your needs (as explained above) and as set out in our Privacy Notice. In keeping with our existing practice, we will never sell your personal data to any third parties. You can change your preferences for how we use your data at any time by contacting your usual contact at Brewin Dolphin by phone, post or email. Please allow 14 days from receipt of your information for any changes to be reflected across our systems. 
We do not sell, rent or loan any identifiable information collected on this site. Any information that you give us will be treated with the utmost care and security. It will not be used in ways to which you have not consented.

Get Started in Minutes

Start investing online

Start investing from £2,000 with the Brewin Portfolio Service. Sign up online. Simple, accessible and cost efficient. Capital at risk.

FIND OUT MORE

Receive Our Insights

Stay updated

Receive email updates with news and views from Brewin Dolphin and information on our products and services.

FIND OUT MORE
CLOSE

Newsletter Signup

Stay updated

Receive email updates with news and views from Brewin Dolphin and information on our products and services.

Capturing your post code will allow us to tailor some of our communication to include regional views and updates that may be of interest to you.

We respect your privacy and take protecting it very seriously. We will only use your data in accordance with your preferences stated above. In keeping with our existing practice, we will never sell your personal data to any third parties.

If, in the future, you would like to update any of your marketing communication preferences, you will receive an email that will provide a link to our Preference Centre.