Monthly Fund Commentary - May 2017

Global Titans Fund Commentary Global equities ended May just shy of a record high as strong company earnings growth supported optimism in the global economy. There was some better economic data to support this, primarily in Europe. In the US the unemployment rate fell in the May labour market release down to 4.4%. The broader Eurozone continued to show signs of improvement, with the 19-country bloc’s unemployment rate falling further down to 9.3%. Consumer confidence in the region hit a post-crisis high. The German IFO survey on business sentiment reached its highest level since inception in 1991. Yet potential headwinds to the global growth story remain. Elections in the UK, Germany and It

Why investors buy at highs & sell at lows

Recency Bias Recency bias is our tendency to expect whatever we have recently encountered to persist in the future. When things are going well, we tend to expect them to continue going well. The opposite is also true. Right now, with markets having been so strong for so long, investors’ behavioural bias is to expect things to continue on their current course. During these periods investors tend to ignore fundamental value and the need to re-balance their portfolios from an asset allocation perspective. Equity markets are forever cyclical. There are long-periods of strong results which tend to be followed by poor returns and vice-versa. Recency bias can be a big reason that investors tend b

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