In contrast, the double appearance of smaller companies highlights unfolding recession concerns in “the West”, where Europe is prominent.
What’s Hot
- Japan again appears prominently…
- …and the appearance by UK Equity Income is also notable, a sector with a Value bias.
- The appearance of emerging market bonds brings into focus one bond option. A weaker dollar would help going forward.
- A showing from Corporate Bonds doesn’t feel right as the UK heads into recession. Be wary.
What’s Not
- Europe dominates the dog sectors, as gloom spreads across Europe…
- …That smaller companies are somewhat worse tells you about recession expectations, combined with limited liquidity.
- The latter set-up also sits behind the appearance of US smaller companies.
- Ditto, the appearance of Property fits with the recession outlook.
- Last but not least, technology. Who buys expensive tech in a recession?...
- …plus China says “don’t buy iPhones”, and the AI “boom” is tailing off, for now.
What’s Hot
|
Name
|
Last Month's Performance %
|
|
Japan
|
2.30
|
|
Global EM Bonds Blended
|
1.02
|
|
UK Equity Income
|
0.90
|
|
Sterling Corporate Bond
|
0.64
|
|
Targeted Absolute Return
|
0.50
|
What’s Not
|
Name
|
Last Month's Performance %
|
|
European Smaller Companies
|
-5.14
|
|
Technology & Technology Innovation
|
-3.75
|
|
North American Smaller Companies
|
-2.55
|
|
Europe Excluding UK
|
-2.47
|
|
Property Other
|
-2.46
|