Your weekly market update
Last weeks sell off keeps the broad trading range we saw throughout June alive with a sell off across sectors reflecting renewed concerns around diminishing growth predictions.
The lag between increased pressure on consumers starting to show in company balance sheets looks likely to see these predictions reduce further,and we believe many developed markets will be in recession at some point over the next two quarter’s, whether technically affirmed or not.
It seems likely that in the absence of further negative news flow we will remain in this trading range for the coming weeks. The cycle of favourable sentiment in sectors is being promptly met by investors banking profit to hedge wider equity exposure.
We continue to advocate holding across most positions and adding to Asian equities and in particular opportunities in China at these levels.
Our ETF pick of the month
If you are looking to invest for the first time or add a diverse asset with a proven track record to your portfolio, take a look at Vanguards Total Stock Market ETF.
With an annual management charge of just 0.03% it is extremely cost effective and offers exposure 3,883 American companies such as Apple, Microsoft, Amazon and Berkshire Hathaway to name a few. Over the past 10 years this ETF has averaged a return of 12.29% and is currently up 16.18% year to date.
If you wish to find out more details you can download the fund factsheet below.
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