Markets’ narrative beginning to shift as political environment is reshaped

This article is part of
Sourcing Income - November 2016

However, in light of the UK referendum and US election results, we do sense a shifting narrative in markets as the political environment is reshaped. 

Central banks are recognising their limits, evidenced through hawkish signals of recent communications. Furthermore, we are now seeing the baton being passed to governments as politicians from all sides support the need for fiscal stimulus to boost growth. 

Markets are sensing the inflationary impact and, while many areas remain at the higher end of their historic averages, there is still value to be found in what remains a challenging economic environment.

Noland Carter is chief investment officer at Heartwood Investment Management