10/05/2010 -
Stockmarket Update
Stockmarket Update
The recent global stockmarket volatility has stemmed mainly from the troubles in Greece and further uncertainty from other European countries such as Spain. This was compounded by a volatile day on Wall Street (Thursday 6 May). This, coupled with our own hung Parliament, has hit stock values in the short term. To show how volatile the markets are, our own FTSE 100 and other European bourses have rebounded strongly on Monday 10 May 2010.
Although we are monitoring the markets carefully, we recommend no action is taken at the current time whilst the markets pause for breath, following a period of strong performance. We expect volatility to remain for the time being, especially as markets traditionally do not like uncertainty.
It is clear that our avoidance of European equity funds over the past 18 months has benefited our client portfolios, and we will continue with our current asset allocations for the time being. It is pleasing to report that UK corporate earnings are improving, with approximately 70% of companies in the FTSE 100 Index benefiting from overseas income. This ties in very well with our equity income proposition.
If you have any questions concerning this, please contact your usual Lewis’ adviser.
Lewis Innovative Investment
10 May 2010
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