Investment Newsletter - January 2013

Page 1

Investment Newsletter January 2013

Out With the Old, In With the New? Happy New Year and welcome to our first newsletter of 2013! There has been a flying start to the year in equity markets after the US fiscal cliff negotiations went to the wire. The fiscal cliff was a combination of automatic spending cuts and tax increases, due to come into effect on 1 January 2013. Had all these been allowed to happen at the same time, the US economy would most likely have gone into recession. As it was, a compromise deal was ironed out, although some decisions have been put off for another two months. The day after the deal, on 2 January, the FTSE 100 jumped from 5,897 to 6,027, 2.2% in one day. As I write (14 January) the FTSE is now above 6,100, levels not reached for around 4½ years. Signs of recovery in China as well the US economy, have also aided investment markets. This has really helped boost portfolio returns in all asset classes, not least in the China fund which we purchased at the beginning of October, which has increased by around 17% since then.

Equilibrium Asset Management LLP (a limited liability partnership) is authorised and regulated by the Financial Services Authority. Equilibrium Asset Management is entered on the FSA register under reference 452261. The FSA regulates advice which we provide on investment and insurance business; however it does not regulate advice which we provide purely in respect of taxation matters. Copyright Equilibrium Asset Management LLP. Not to be reproduced without permission


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.