Wildex Investment Calls for Greater Portfolio Resilience Heading Towards and into 2019

Strong economic growth throughout the United States during the first half of 2018 has created a positive spillover effect for the rest of the world. Global economic performance has sustained, jobs data continues to rise and equity markets continue to perform along an unprecedented bull run period.

In spite of such positive signs, there remains a great degree of market uncertainty as a number of critical political event begin to unfold in Europe, and trade war issues continue to shake the global economic balance.

With this greater uncertainty and the inevitable continued rising of interest rates, portfolio managers at Wildex Investment are working to build greater levels of portfolio resilience in the face of tightening financial conditions.

“Fiscal stimulus continues to fuel global growth as a spillover from the US enhances, in particular, the emerging market economies. Corporate earnings have become the major beneficiaries of this growth and in turn investors have been rewarded by a bull run that apparently knows no end,” commented James Callaghan, Senior Portfolio Strategist at Wildex Investment.

“As investors prepare to close in on a successful 2018, a key theme underlying portfolio balance will be heavily determined by each individual’s approach to the increasing levels of uncertainty surrounding the Brexit confusion and the US administration’s stance on tougher global trade agreements.”

Also highlighting the need for treading forwards with caution are the equity valuations caught up in the same bull run that has seemingly rewarded the large majority of participants for well over half a decade.

“I don’t think that anyone can argue that equity and bond valuations are in large overvalued. On both sides of the Atlantic, markets have over performed and comparative GDP figures show huge discrepancies that are simply unsustainable. Take the period between Q1 2009 and Q1 2018 as an example. The German Dax rose 22%, while nominal GDP was up only 37.4%. The S&P 500 rose 238% with GDP gaining 38.7%. The numbers just don’t make reasonable sense,” continued Callaghan.

Whilst specialists at Wildex Investment advise on a cautious approach to the allocation set, quality equities and short bond positioning, combined with increased levels of diversification will prepare portfolios with sufficient levels of flexibility to defend against the likelihood of increased volatility over the coming period of uncertainty.

About Wildex Investment

Wildex Investment is an independent alternative asset manager, providing a global client base with a tailored approach to the management of their financial responsibilities.

From our Hong Kong, New York and Frankfurt locations, we continue to serve the dynamic needs of private investors, their families and their businesses as together we work towards the consistent delivery of absolute investment returns.