Quarterly Portfolio Update - Q3 FY2019
After a rousing start to calendar 2019, the mood for global equity markets in March was a touch more circumspect. The ASX 200 and the Blended and Income Equity portfolios also showed moderation by recording a broadly flat performance in March, but delivered double digit returns over the quarter.
On balance equity markets continue to be buoyed by a more accommodative stance by central banks as interest rates remain at near or record lows and quantitative tightening measures are further relaxed. Concern over a prolonged period of slowing global economic activity has moderated for now, with recent economic data from China and the US showing signs of expansion.
Nevertheless, the ebullient performance of equities in 2019 warrants investors to exhibit greater caution going forward. We remain mindful that investors have been the beneficiary of an extended period of economic growth. At this point in the economic cycle the foundations of sound portfolio construction adhering to owning quality businesses at fair valuations and well capitalised balance sheets remain prominent in our thinking.