IS IT TIME TO TAKE SHELTER?

CIO MONTHLY | MAY 2017

One of the most common questions we get asked by clients is whether equity markets can continue to advance, or whether now is the time to take shelter and move into cash.


There’s no easy answer to this question, as it’s impossible to know for certain what the future holds. Indeed, very few people were able to predict the Global Financial Crisis (GFC), the depth of the share market declines that followed, or the extent of the recovery rally. Likewise, few people were able to forecast the outcome of the UK referendum or the US presidential election—and the market rally that followed these events. 

In this month’s article, we look at some of the factors that support elevated equity market prices, some of the risks appearing on the horizon, and discuss whether this means that now is the time for investors to take shelter.