William Hobbs, Head of UK and Europe Investment Strategy, talks to Rupert Howard, Senior Portfolio Manager, about what has been happening in markets and portfolios over the third quarter and what we can expect as we look ahead to the end of the year.
Rupert acknowledges that the third quarter has been challenging with some extreme market moves which saw most portfolios giving back a large proportion of the gains made earlier in the year. However, through the adoption of a truly diversified approach, Rupert believes that the protection already inherently in portfolios has helped to mitigate some of the pain from the recent volatility.
As we enter the final quarter of the year Rupert sees a return of risk appetite while some of the more apocalyptic fears around China start to recede. China, and the commodity complex, remains the key to how the end of the year might pan out. However, Rupert is confident that the improvement in the US story and in Europe presents a favourable backdrop which supports his conviction in these regions.
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