Key takeaways from the week
  • Stocks continued to add to recent gains this week, however China remains a lingering threat to the global economy and financial markets;
  • Chinese stocks continue to struggle on more evidence of economic weakness: But while China is struggling, most of the Emerging Market complex is participating in the recent rally; and
  • European markets had a mixed reaction to a significant expansion of the European Central Bank's (ECB) stimulus program: By Friday, markets had regrouped and rallied. 
Faulty crystal balls 


Bloomberg provides our point of interest this week
, illustrating the problem with predictions with reference to the oil price.

Their chart (link above) shows the points at which various experts, corporations and authorities have stated the bottom of the oil market over the last 2.5 years, all yet to be proved right. If the collective resources of JPMorgan, OPEC member Qatar, and the International Energy Agency don't know when the bottom of the oil market is, how does anyone else stand a chance?

The trick is to ignore the mass of noise and hysteria generated by the industry and trust the evidence that asset allocation and diversification work when left to do their job.

With the recent market pullback if you invested more, great.

If you didn't, don't worry, staying invested in the longer term is right.

If you sold out in panic or felt like you wanted to, then speak to us to help calm those nerves. Understanding why you should ignore those faulty crystal balls is key successful investing.

Market data
 Equity Indices  Value   Weekly change 
FTSE 100 6189.64 0.24%
S&P 500  2049.58 1.43%
Hang Seng  20671.63 1.14%
Shanghai Composite Index  2955.15 -3.74%
Nikkei 225 16724.81 -3.04%
Dax 30 9950.8 -0.40%

 

Bonds  Value   Weekly change 
US 10 yr 1.87% -4.28%
UK 10 yr 1.45% -6.90%

 

Commodities/ Energy  Price   Weekly change 
Gold $1,255 1.01%
Brent Crude Oil $41.20 4.78%

 

 Currency Majors   Value   Weekly change 
EUR-USD 1.118 1.55%
USD-JPY 112.96 -1.90%
GBP-USD 1.4308 1.11%

 

 Central Bank  Rate 
Fed Reserve 0.50%
ECB 0.00%
Bank of England 0.50%
Bank of Japan -0.10%

  

Prices as at Friday 18 March 2016.

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