January started particularly well for the majority of financial markets, but the month ended with a drop in prices for many asset types. With markets on such a strong run recently, a dip in prices at some point was widely expected.
Towards the end of the month the US Federal Reserve (Fed) indicated that there may be more interest rate rises this year than previously expected, to try and control the pace of US economic expansion. This spooked bond investors, with asset prices falling as a result, and having a negative knock-on effect for equities.
January started particularly well for the majority of financial markets, but the month ended with a drop in prices for many asset types.
For sterling investors, a key area to watch is the strength of the pound. Against the US dollar it returned to pre-Brexit levels in January. Although this is good news for UK holidaymakers going abroad, for investors a strong pound can negatively impact returns from overseas assets.
Read more about how Solomon Nevins, Senior Investment Manager, and Mayank Markanday, Investment Manager, positioned the Architas Diversified Real Assets Fund and the Architas Diversified Global Income Fund last month in shareable client-friendly PDFs.
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