Despite President Trump’s continued political issues the US was by far the best performing market in August.
Key to this performance is the underlying strength of the US economy and the continued positive earnings of US firms. Markets largely ignored the ongoing trade war as well as questions over Trump’s future. Trade war talk had more of an impact on emerging markets, which are expected to be hit worst if the US continues to raise tariffs on imported goods. The UK also suffered from further Brexit uncertainty.
Fixed income markets were fairly flat with no real market moving news. August did see an interest rate rise in the UK but this was widely expected and had a limited impact on markets. While there is likely to be a further increase in the US shortly we don’t expect the UK to follow their lead any time soon.
Read more about how Sheldon MacDonald, Deputy Chief Investment Officer, positioned the Architas Multi-Asset Blended Fund range and Architas Multi-Asset Passive Fund range last month in a shareable client-friendly PDF.
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