“The posturing with Russia over the Ukraine could have an impact across global markets”
At the start of January investors could have been mistaken for thinking that 2014 was going to be a bumper year. The markets responded strongly until midway through the month when this tailed off and eventually delivered flat returns. February was stronger but March was challenging with concerns on the impact of the Russian annexation of Crimea.
We indicated in our last review that tapering and Abenomics will be significant factors on the global markets; we still believe this to be the case but the crisis in Crimea has the potential to derail the positive effects.
Some of the strongest markets in 2013 have struggled this year including Japan and the US. However, European markets continue to post strong returns.
Asia and Emerging Markets remain an area of disappointment with poor valuations and weak returns.
All of this reflects greater volatility for investors and we suspect lower returns than 2013. Managers are still positive that there are good stories across the globe and Europe is one area that is being heavily promoted.
In this review we will aim to unpick some of these themes.
NOTE: This is written in a personal capacity and reflects the view of the author. The post has been checked and approved to ensure that it is both accurate and not misleading. However, this is a blog and the reader should accept that by its very nature many of the points are subjective and opinions of the author. This is not a recommendation to buy any product or service including any share or fund mentioned. Individuals wishing to buy any product or service as a result of this blog must seek advice or carry out their own research before making any decision, the author will not be held liable for decisions made as a result of this blog (particularly where no advice has been sought). Investors should also note that past performance is not a guide to future performance and investments can fall as well as rise.