Monthly Newsletter – September 2019

We begin September’s newsletter by addressing the latest developments on Brexit and the implications. With many clients of ours having UK based assets, this is a major area of focus that we will be paying close attention to. Our September newsletter also covers the turbulent August market conditions with the S&P 500 losing 1.8%, Foreign Developed Stocks (MSCI EAFE) losing 2.6%, Emerging Market Stocks (MSCI EM) losing 4.9% whilst defensive asset classes such as US Investment Grade Bonds (+2.6%) and Gold (+7.7%) delivered positive returns. Finally, we share the most recent monthly commentary from Pacific Asset Management.

Brexit Developments & Implications

Brexit is certainly one of the greatest risks investors face currently. Since Brexit was announced on June 23rd, 2016, the pound (GBP/USD) has fallen from 1.49 to 1.22 today (-18+%). Newly elected prime minister Boris Johnson is prepared to walk away from the EU if the two sides (UK & EU) cannot reach an agreement by October 31st. However, the UK parliament just passed legislation that will force Mr. Johnson to delay Brexit if an agreement cannot be reached by October 19th. Mr. Johnson responded by calling for an early general election, which was blocked because officials opposed to Brexit want a “no-deal” scenario entirely off the table. Parliament is scheduled to vote again on this early election motion sometime next week.

Please visit BBC’s website below for the latest Brexit coverage:

Brexit – BBC News

Market Perspective

Schwab experts share their latest market insights and perspectives.

Key points:

  • Equity markets have stabilized and remain within their broad range established over the past six months, but risks remain.
  • Manufacturing sentiment and activity continue to be weak, but that malaise has not yet bled into the larger consumer segment of the economy.
  • Not all trade news is gloomy, and certain international regions, like Japan, may provide some much-needed diversification in the current environment. 

Click on the link below to read the full report:

Schwab Market Perspective: Storm Clouds Building

Monthly Market Commentary

Our partners at Pacific Asset Management share their latest Market Commentary. Please click the link below to read the latest monthly commentary:

Pacific Asset Management – September Commentary