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David Appleton

Market Comment  02/03/2016

How worried should investors be about the health of financials?

In response to Investment Week's latest Big Question, 'How worried should investors be about the health of financials?' David Appleton, Investment Director at Cornelian Asset Managers responds to explain why the reform process has been uneven.

The recent loss of investor confidence in global financials sends a very clear signal to us that the process of reforming the banking system following the financial crisis has been uneven and the healing process is incomplete.

It is clear that some European banks, unlike those in the UK and US, have not been sufficiently ambitious in their efforts to deleverage and restructure, and are consequently seen as inadequately robust to deal with the current, more challenging environment.

The financial system is, by its nature, heavily interlinked and when confidence in the weakest actors falters, this fragility can spread like a virus to all participants during a period of investor panic as we have recently experienced.

In the recent sell-off, investors appeared to adopt a 'sell-now ask-questions later' approach, with the prices of shares and bonds issued by robustly capitalised, well run institutions suffering sharp falls despite no detectable deterioration in fundamentals. This should create opportunities for disciplined investors willing to look through the current volatility. However, stock selection will be key.

David Appleton
Investment Director

Market Comment  01/09/2017

Market Commentary - September 2017

During the three months to the end of August, the Conservatives returned to government without an overall majority in parliament and political developments in the United States began to call into question whether President Trump would be able to enact some of his growth promoting policies.

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Market Comment  01/08/2017

Market Commentary - August 2017

During the three months to end July, Sterling strengthened against the US Dollar despite the conservatives returning to government in June without an overall majority in parliament. Sterling weakened materially against the Euro as economic data releases in the Eurozone region surprised positively.

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