- Both the Bank of England and Federal Reserve decided to keep rates on hold, as was the expectation, with rates remaining constant at 0.25% and 0.75% respectively.
- There was a strong backlash from a number of world leaders and the CEO’s of large US companies, who openly condemned Donald Trump’s executive order to suspend the refugee programme for 120 days and banning anyone arriving from seven Muslim-majority countries, with certain exceptions.
- Microsoft issued the biggest corporate bond of the year, borrowing $17bn, in an effort to tap debt markets ahead of a number of expected rate rises in the US this year
- Theresa May won an important vote in the House of Commons by 498 to 114, for a bill that will give her the power to trigger Article 50 next month
- On Thursday 9 February we will see Initial Jobless Claims figures released in the US, with the current survey suggesting 246k
- On Friday 10 February we will see MoM Manufacturing Production data released in the UK, with the current survey suggesting 0.95%
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 31/01/17
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.