As if a gloomy start to 2016 for global markets was not enough, many investors are puzzled to see sectors with the strongest earnings estimates failing to buck the trend. The financial sector, in particular, is seemingly trapped in the broadly negative sentiment stemming from global equity weakness.
Equity investors will remember 2015 as a difficult and disappointing year.
2015 will also be remembered as an extremely volatile year.
The first half of the year was extremely positive with a massive rally in Chinese equities and spectacular performances of the European bourses, but as early as May we warned investors about the coming correction in western markets, particularly the US, and raised our cash levels to 50 % in our model portfolio.