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16th August 2020

💷 HY Strategy Portfolio: 14.2% returns in 5 Months

Market Overview

Mid-August greetings – and what a surprise. The US equity markets are toying with a record high in the case of the S&P index. Other markets are feeding off it, rising tides and all that. Should it be so? We’re still gripped by the coronavirus pandemic, as well as the timing of potential for the development of an effective vaccine (facing continual lockdowns, and closing air bridges etc).

There’s also plenty of uncertainty in the West (and others) versus China on a whole host of issues. The US election is also now firmly in view and market volatility in the weeks around it could be something else.

That aside, easier liquidity conditions are here – forever, it seems; In fact, we’re going to see said conditions ease more. That is, there’s more stimulus coming. That money will need a home, so look for ‘the bubble’ to inflate some more and valuations to continue to not fit with any historical models. The message is clear – don’t fight it, chase it. Look for a good run into year-end.

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