- Theresa May set out the UK’s Brexit blueprint, citing a “Global Britain”, with plans to take the edges off a hard Brexit by potentially continuing with the negotiations after the two year period has elapsed. This set the pound (£) soaring against other currencies, rising close to 2% against the Dollar ($) after her speech
- At its latest meeting, the ECB decided to keep both interest rates and the level of quantitative easing unchanged, with Mario Draghi noting that underlying inflation pressures in the Euro area remain subdued
- Apple are set to increase the cost of all apps sold through its UK app store by approximately 25%, citing prolonged weakness in the pound (£) as the major contributor to the hike
- The end of the week saw an end to a US Presidency. After eight years in the White House, US president Barack Obama served out his final day, paving the way for new president Donald Trump after completing his inauguration
Source: Bloomberg, Copia Capital Management. See Notice.
- On Thursday 26 January we have UK Chained GDP YoY, with expectations currently at 2.1%
- Also on the 26 we see Initial Jobless Claims in the US, with prior numbers standing at 234k
A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilits our portfolios away from equities during such periods.
A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.
A score of 1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilits our portfolios towards equities during such periods.
*as at latest realignment 19/12/16
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.