Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

by Chris Beckett, Head of Equity Research

WORLD MARKET OVERVIEW

“US equity markets reached new all-time highs last week – so all is fine for equity investors? Yes, if you look at returns so far this year, but no, if you focus on the risks to continued profit growth in the quarters to come. Investors have a large degree of faith in monetary authorities to maintain the current economic expansion through 2020 and beyond. The decision of how much stimulus the economy needs, however, is a difficult one….”

ECONOMIC OVERVIEW

“Financial markets sometimes have difficulty in focusing on what really matters for long term investors. However, focus over the last week has been on the USA and China, two economies that are crucial to global prosperity. Headlines will focus on second quarter Chinese GDP falling to 6.2%; its lowest level for 27 years….”

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Investors should remember that the value of investments, and the income from them, can go down as well as up. You may not recover what you invest. This commentary has been produced for information purposes only and isn’t intended to constitute financial advice; investments referred to may not be suitable for all recipients. Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.