Market Commentary
Markets are fickle things, just last month we were observing the strong forces of sentiment which can have a material impact on how securities are priced and traded on any given day, and that during the latter part of 2018 a combination of fundamental factors and market sentiment had led to equity markets in particular experiencing some sizable falls.
Clearly, a number of market participants saw this as an opportunity to buy (not least due to comments from the Federal Reserve around the expectations of interest rate movements), and this led to something of a reversal during January. These recent movements confirm in our mind a couple of aspects of our philosophy on managing such assets:
1) Trying to time markets in the short-term is generally unwise, and instead focussing on the medium to longer term is to be preferred, and
2) markets aren’t always rational and therefore active management within sectors provides opportunities to add value over time