Chasing value in markets not any easier

We are fast approaching the middle of 2017 and financial markets are experiencing relative calm. Investors are well advised to review progress and consider how best to position themselves for a full-year performance.

Compared to the fears that were widespread at the start of the year on geo-political issues, the actual outturns so far are reasonably benign. Brexit and the UK general election are making plenty of headlines but the impact on money markets has been limited. Sterling bought you €1.17 on January 1 this year and yesterday was trading at €1.18. The FTSE 100 commenced the year at 7,145 and is now at 7,300.

At a broader level, the VIX, which measures implied volatility on the S+P 500, is at its lowest level since 1993. The outcome of the earlier Dutch election, last weekend’s French election, and growing popularity for German leader Angela Merkel are all calming nerves.