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  • 24th June @ 11.00am - Market update

Latest 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

Latest News  27/03/2019

Could Latin America be the big investment story of the next decade?

Investment Director David Appleton assesses a region that, with one of the world's youngest and fastest growing populations, looks set for economic expansion. Could under-investment over the last decade, coupled with recent political change, provide an exciting opportunity for investors?

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Latest News  26/02/2019

Asset Allocation - An Alternative Outlook

Investment Communication Manager, Rachael Dunbar-Nasmith, outlines the benefit of considering alternative asset classes over more 'traditional' multi asset portfolios and how Cornelian's unconstrained approach can help deliver real value for investors.

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