Negotiating Choppy Waters


Negotiating Choppy Waters

Posted on September 28, 2018

August saw Wall Street reach new highs, emerging markets experience increasing turbulence with sharp, selective declines, and a further flattening of bond yield curves as inflation and interest rate expectations gradually edged higher. The inconsistent performances across asset classes has highlighted the value of multi asset portfolios, with their potential to diversify risk and safely negotiate ‘choppy waters’.

Hence, Alpha Beta’s approach of rigorously analyzing each asset class, by means of fundamental, technical, macro and geopolitical factors provides a framework for constructing portfolios with attractive risk and return profiles. Our UK investor-oriented higher risk portfolios significantly outperformed the FTSE 100 and the lower risk portfolios provided near equity market levels with significantly lower volatilities (see the Monthly Performance chart on the downloadable document).

Meanwhile, the continuance of the long running equity Bull market (which started back in March 2009), fuelled by a combination of quantitative easing and subsequent robust growth, particularly in the US, is coming under scrutiny in certain quarters. The US market has broken the 1990 to 2000 record of continuing days of rising prices, not interrupted by any decline of more than 20%. However, we believe it is, as often has been in the past at similar stages of economic cycles, premature to pay heed to prophets of doom. We expect late cycle growth to continue this quarter, supported by: robust earnings and economic growth. The market is currently trading on a 17 times forward earnings-multiples, which is quite full, but by no means excessive by historical standards and we do not expect a major reversal in the quarter ahead.

Download PDF to read our presentation in full.



Other news

ABPX Fact Sheets

The Alpha Beta Fact Sheets for Q3 2018 for portfolios AB1X-AB6X are available to download.

Read more

ABP Fact Sheets

The Alpha Beta Fact Sheets for Q3 2018 for portfolios AB1-AB6 are available to download.

Read more

ABP Performance Data, 2017-2018

ABP is pleased to report its first 12 month performance track record.

Read more

Advantages of a Hybrid Solution over Robo

George Higginson, joint MD of Alpha Beta Partners, was interviewed by Citywire Wealth Manager magazine about ABP’s ‘hybrid approach’ to Discretionary Fund Management.

Read more

How Alpha Beta Partners is so Cost-Competitive

Our Chief Investment Officer at Alpha Beta Partners, is Shahid Chaudhri. In this short video, he describes why Alpha Beta Partners is different from competitive offerings.

Read more

Introducing Alpha Beta Partners

Chair of Alpha Beta Partners Ltd, John Reynolds, has recorded a short introduction to our company and touches on how it will benefit Independent Financial Advisors (IFAs).

Read more