Please see below an article which was published yesterday (02/06) by Kristina Hooper, Chief Global Market Strategist at Invesco, which outlines various areas to watch throughout June:
As you can see from the above, the are a lot of moving parts that need to be monitored. Some of the key areas to focus on are:
The unlocking of the Eurozone – hopefully retail sales flow through in line with the easement of restrictions.
Inflation expectations – Inflation remains a hot topic. We will see just how much pent-up inflation has built up and whether this is long-term trend which will force central banks to act or whether this is a result of an initial supply and demand chain issue resulting from economies opening up.
Covid vs Vaccine rollout – whilst the vaccine rollout in developed economies is ramped up, variants in developing countries could still pose a threat.
Geopolitical tensions – as things slowly start to return to a form of normality, geopolitical tensions are becoming mainstream news again.
There was also mention of a potential summer sell-off, this should not be ignored or overlooked, but it remains important to note:
- This is Invesco’s view, other fund managers may have a different opinion on this
- If a sell-off does happen, this may not necessarily be a bad thing as it can create buying opportunities
- Investors need to consider their long-term objectives and investment time horizon. Markets will recover from any sell-off, it’s just a matter of time and investors need to be patient.
Please continue to check our Blog content for advice and planning issues and the latest investment, markets and economic updates from leading investment houses.
Please keep safe and healthy.
Carl Mitchell – Dip PFS
IFA and Paraplanner
03/06/2021