Sterling is not gaining safe haven status as some suggest, says Barclays Wealth equity strategist Henk Potts, and it would be a mistake to give up on balanced long-term investing now.
- Many private investors' patience with risk assets may be wearing thin
- If so, cash would be our favoured "safe haven"
- But we think it would be a mistake to give up on balanced long-term investing now
- The objective news this last week has not been as grim as feared
- We retain our cyclical bias in sector strategy
- Within the energy sector we look to benefit from increased capital expenditure
- Consumer discretionary names should benefit from growing consumer spending
- IT companies are attractively valued and should benefit from longer term trends
- European Banks continue to be beaten up in the ongoing storm
- Liquidity risk remains a concern for some European banks
- Italy and Spain started a month of heavy issuance with mixed results
- Sterling does not seem to be gaining a safe haven status (as some suggest)
- We expect selected commodity currencies to stay supported over the quarters ahead
- Some downside risk to the euro likely this month
- Geopolitical risks are likely to remain a key theme in oil markets going forward
- Hopes for Libyan oil production to return to its full capacity early are overly optimistic
- Nigeria may well provide further upside risks to oil prices if large-scale oil facilities are attacked
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch