Market Commentary February 2014

Last month we advised investors “the rally enjoyed by the equity market since mid-December has taken the indices up to levels where we see profit-takers coming in.”

Despite the FTSE 100 gaining more than 100 points at one stage, it subsequently fell on profit taking, a weaker than expected job report in the US, a disappointing manufacturing figure in China and pressure in Emerging Market currencies. This brought the market down 3.5%, its worst January performance since 2010. We view this debate as healthy, and remain steadfast in our long-term positive outlook.

Our short-term cautious stance on the equity market saw us recommending the International Personal Finance 6.125% 08/05/20 bond. Despite this, it still put in a decent performance, gaining 1.8%.