In hindsight we underestimated the resilience of the global economy in 2023 and could have advocated taking more risk. But as Rathbones’ Co-CIO Ed Smith explains in this video, global earnings have been falling since January and equity markets have been largely driven by sentiment.
Quarterly Investment Update video Q4 2023
Trying to time every ebb and flow of investor sentiment is not our business. Instead, we set a strategic asset allocation, find companies that we can believe in over the long-term, and look to respond tactically to major turning points in the economic cycle.
To frame the way ahead, Ed revisits the checklist we have for turning more positive on the outlook for financial markets in general. Historically, new ‘bull markets’ have required at least two of our five conditions to be met, and so far only one has.