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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  13/07/2017

Quarterly Investment Webinar - July 2017

Catch up on the recording of our latest Investment Webinar, where you can find out from Hector Kilpatrick and David Appleton why we believe this is not the time to be fully 'risk on', why we are warming to Japanese equities and where we see value in global markets...

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Latest News  29/06/2017

How do Cornelian stack up in Edinburgh's competitive Wealth Management space?

Online adviser discussion platform, DISCUS interviewed Cornelian's Marcus Brooks and Hector Kilpatrick to hear how Cornelian stack up against the many discretionary fund managers based in and around Edinburgh. At a guess, how many do you think there are? Ten, fifteen, twenty perhaps...

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