Olivia Geldenhuys

Uncertainty of US policies is negatively impacting economic growth and business investment. The path ahead for US profit growth is unclear and companies might delay crucial long-term investment spending decisions, reducing their future potential. Although markets recovered from the tariff sell-off in April, opportunities outside of the US are appearing more attractive. The rising acknowledgement that Europe and the UK needs to rebuild defensive capabilities appears to provide a path towards increased profitability. Additionally, such spending can have large multiplier effects on the wider economy. With this backdrop, we have reduced exposure to US equities and the proceeds have been equally reallocated to the UK, Europe and Emerging Markets. We retain a positive stance on Japanese equities due to corporate reforms and economic indicators.

‍