Markets may have shrugged off the summer's Brexit-related volatility but investors should use this 'becalmed' period wisely to bolster portfolios against future potential downturns, Heartwood Investment Management has warned.
According to Jaisal Pastakia, an investment manager at the firm, markets are being driven less by fundamentals and more by liquidity, the hope of continued central bank policy measures and, more recently, perceptions of a potential boost from significant government spending. "Many investors are comfortable in the belief that, as long as global central bank support remains forthcoming, this ‘goldilocks' state can continue," he added. Both the FTSE 100 and FTSE 250 bounced back throughout August despite initial Brexit-related trepidation. At the same time, recent falls in the VIX index ...
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