Page 13 - ISQ UK_October 2017

OCTOBER 2017

further change and reform by governments in the Eurozone, Asia and
Recent history suggests the Americas can also be influential as a rising global tide can help lift
most boats. Watching the progress of governments and reform
the fourth quarter will be initiatives across the world will be highly influential for the UK market
friendly to investors however during the fourth quarter as this is one method how already firm
valuations can rise further.
it remains a financial market
backdrop where active Recent history suggests the fourth quarter will be friendly to investors,
but for this to occur again keep watching corporate earnings, global
participation is both sensible government reform initiatives, UK political stability and the Brexit
and necessary discussions. In short... keep watching everything. It remains a financial
market backdrop where active participation is both sensible and
necessary.

threat, as any signs of positive progress in Brexit discussions and/or KEY TAKEAWAYS:
enhanced domestic political certainty can help induce current very
underweight positions to become... less underweight. We have • Recent history suggests the fourth quarter is a
already seen the Pound lifting against many global currencies - apart stronger-than-average period for returns
from the Euro - as a worrisome world starts to develop different • Watching fundamental company data and general
shades of grey. These heavy global sentiment underweights are maybe investor sentiment will be particularly important
the most compelling reason to be looking for opportunities in the UK.
• Keep actively engaged with markets - there is a lot
And talk of the Euro and Europe per se highlight another important going on at the moment
factor. After a number of years of strong financial market performance,

UK STOCK MARKET - % OF UP MONTHS
1980 - 2016

Source: UK Stock Market Almanac

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