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August brought a burst of volatility

11 months ago

Tariff issues and tweets from US president Donald Trump fuelled this volatility. This resulted in shares (also referred to as ‘equities’) selling off and bonds going up. Brexit uncertainty also climbed, as UK prime minister Boris Johnson forced a suspension of Parliament, while the Italian coalition collapsed and markets in Argentina quaked at the prospect of a populist government.

Over the month fears of slowing economic growth mounted, as Germany and the UK teetered on the brink of recession. Inverted yield curves in the US and UK government bond markets unsettled equities and sent investors scurrying for safe havens, such as gold. Inverted yield curves happen when bonds with long dates to maturity offer lower yields than those with short dates to maturity. They are often considered to indicate an oncoming recession. We were defensively positioned coming into August and we used the month as a time to re-evaluate the portfolio.

Read more about how Nathan Sweeney, Senior Investment Manager, positioned the Architas Multi-Asset Active Fund range last month in a handy two-page PDF.

Nathan Sweeney

Senior Investment Manager

Nathan co-manages the Architas Multi-Asset Active Fund range and the Architas Multi-Manager UK Equity Fund. Nathan’s analyst responsibilities consist of US economic research and US fund selection.


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