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  • 24th June @ 11.00am - Market update

Archived News  24/06/2016

24th June @ 11.00am - Market update

The conclusion of the Brexit referendum has unsettled investors and the initial reaction has been a classic ‘risk off’ move, whereby equities have been sold and gilts bought. Political and economic risk has increased and it is correct that the risk premium demanded to hold equities has risen.

More interesting to us is the move in gilts. Although several credit rating agencies are threatening to downgrade UK government debt on the back of the EU referendum result, investors are buying gilts. On a bleak day in the markets we find this encouraging.

Despite the political PR, the UK economy remains in a fragile state as the country continues to labour under both a large budget deficit and a large current account deficit. Had gilts sold off substantially this morning, it would have suggested that international investors were no longer prepared to finance the UK economy and the negative ramifications for Sterling would be significant.  The fact that this is not happening provides a crumb of comfort today.

Hector Kilpatrick
Chief Investment Officer

Archived News  12/12/2018

US versus China - is trade friction easing?

Hector Kilpatrick, Chief Investment Officer at Cornelian Asset Managers, assesses the increasing likelihood of a trade deal.

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Archived News  01/12/2018

Market Commentary - December 2018

Cornelian's Investment Team give their overview of the month past and look ahead with optimism in their latest Investment Outlook.

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