Despite the initial market downturns triggered by tariff announcements in early April, global equities have demonstrated resilience:
- S&P 500: After a sharp decline, the index has rebounded significantly from its April lows
- MSCI All Country World Index (ACWI): This global benchmark has reached new highs, surpassing 888 points, reflecting a large increase from its recent lows.
These recoveries underscore the importance of maintaining a diversified investment approach, as markets can swiftly rebound from short-term shocks.
🌐 The Power of Global Capitalisation-Weighted Investing
Rather than trying to predict which country, sector, or stock will outperform next, our approach is grounded in:
✅ Global Capitalisation Weighting:
Investing in companies in proportion to their size within the global market ensures you’re not overexposed to any one region or asset class. Currently, over 60% of global equities are domiciled in the U.S., but the rest of the world – including emerging markets – still plays a crucial role.
✅ Agnostic Asset Allocation:
By not making speculative bets on short-term winners, and instead allocating based on data and evidence, we remove emotion from the process. This leads to better long-term outcomes.
✅ Evidence-Based Investment Process:
Our portfolios are built using robust academic research, not media narratives. As economies shift, our clients remain positioned to capture the long-term returns of global markets.
🔍 Our Outlook: Stay Invested, Stay Global
The recent tariff-related disruptions and slowing growth projections are not unusual. Markets will always face political and economic events. But trying to predict or time these changes is rarely successful.
Instead, we believe in staying the course with:
- Long-term perspective
- Cost-efficient portfolios
- Broad global exposure
- Clear alignment to client goals
Final Thought:
In an age of headlines, discipline is your superpower.
Your portfolio should be built to weather noise — not chase it.
Recent Comments