Most financial markets started the year strongly, much like they ended 2017, but the last few days of January saw prices dip sharply. It has been a month of contrast for equities. Many stock markets hit fresh record highs earlier in January, with the S&P 500, a leading measure of US equities, having its best start to a year since 1987.

Most financial markets started the year strongly, much like they ended 2017, but the last few days of January saw prices dip sharply.

The end of the month was a different story however. Concerns that the US Federal Reserve could raise interest rates quicker than expected caused bond markets to fall. This negativity then spilled over to equity markets, with the US leading a global sell-off. After such a strong run for equities in 2017, a fall was largely expected to occur at some point. The underlying fundamentals of the global economy are still healthy however. We believe the long-term picture for investors remains encouraging, although we could see a few more bumps in the road this year.

Read more about how Nathan Sweeney, Senior Investment Manager, positioned the Architas Multi-Asset Active Fund range last month in this shareable client-friendly PDF.

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