The Week That Was

Despite any fundamental change to policy or economic climate we saw another strong week with investors putting to one side, concerns over the building economic clouds gathering on the horizon.

The pullback in Tech and Financials of the previous week was bought back into with big tech pushing new highs and Apple once again topping a $3 trillion valuation.

Sentiment is fickle and volumes relatively low and it is difficult to justify wholesale moves to risk on generally. Slowly increasing exposure during periods of negative sentiment could well be a solid longer term strategy but we are still advocating hold positions with increased cash exposure at these levels.

We have been bullish on travel stocks since those locked down days. This was always a potentially long term exposure but last week saw tremendous gains across the sector and in particular cruise lines, where falling fuel costs and strong bookings have finally swung investor sentiment to positive and we believe this should be sustained and built upon in coming months.

Tech continues to look expensive in relation to other sectors and whilst we believe this sector will, more strongly, defy any sustained economic downturn, any further gains must be viewed as fragile.

Asian markets on Sunday night hint at a strong kick off this week but with few major releases or announcements this week it could be all about holding onto strength already priced in.

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