DAA change: reduce cash, increase international equities
International equities started to fall a few months ago when the markets started to digest expectations of higher interest rates and have continued to come under pressure from the Russian invasion of Ukraine.
We have no special insight into how long the invasion will last or what the outcome will be. But earnings growth continues to be good in most major markets and valuations are substantially cheaper than they were a few months ago, so we are reinvesting some cash and narrowing our underweight to international equities.
If current trends continue we will steadily move back to a neutral position over time.
Clients who are logged in can access the updated model portfolio files and standard text from our downloads page, and will see the full details of the portfolio changes and suggestions for implementation below.
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Please note that past performance is not a reliable indicator of future performance.
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