Market Commentary June 2018

With major indices within touching distance of all-time highs, we sense that investor unease is rising. Articles about the seasonal “sell in May and go away” phenomenon litter the financial press whilst heightened political issues in Italy and Spain, renewed trade tensions and continued Brexit uncertainty are all ingredients that make for a long and nervy summer. Whilst selling has been limited since the first quarter of the year, there is still plenty to worry the bulls. Though we see few signs of an imminent bear market/recession, there are plenty of catalysts for a 5%-10% pullback, though not enough to advise selling.