News this past week
- US dollar falls to near 1-year low
- Risk-off sentiment leads to Treasury yields falling
- Various US employment measures disappoint unexpectedly
- UK PMI data dips to 3-year low in April
- Oil price stumbles at start of week
James Klempster, CFA of Momentum Global Investment Management shares his view:
The developed world has its fair share of political contention to deal with this year: the UK’s in/out referendum on EU membership is fast approaching and the US election looks poised to provide an extraordinary contest between polar opposites Donald Trump and Hilary Clinton. On an individual level political change can be an important factor: a person who is neglected by one political regime may be pandered to by another; likewise one group may do well to be in the European Union whereas others are disadvantaged by it. As a result individuals rightly worry about the likely outcome of general elections and referenda. But the key question for us – as investors – is whether these polls help or hurt the ability of us to generate the requisite returns for our clients.