Notes from the kitchen - Episode 1
- Speculation over political machinations on changes to voting districts might distract from further Stimulus measures. Look for equity market to retrace some of recent gains. Taking a little profit from broad market equity exposure.
- Chinese economic data proving surprisingly resilient, pointing to robust domestic consumption. Demographic change still in focus.
- Favourable response to EU economic support package saw bonds (particularly peripherals) tighten further. Can 10 Year BTP’s at 1.04% be a bargain versus 10 Year Bunds at -0.5% ?
- Too early for Commercial Property, given the potential for write downs on new lease negotiations, and move from companies towards greater home working. Online retail warehousing the exception.
- Agricultural Land and Water and Pollution Treatment opportunities to be investigated further.
- Topping up current precious metals weighting with addition of physical Silver holding. (Favourable Gold / Silver ratio, industrial demand outlook, and weaker Dollar).