Caution required after the comeback

The global equity market staged a recovery from its tariff-induced lows in June. However, the risk remains that tariffs will impact global growth and inflation and be present in future economic data. Investors remain concerned about potential measures after trade deal deadlines pass, as uncertainty persists around global fiscal, monetary, and geopolitical policies. Following the market recovery, Brooks Macdonald has adopted a cautious approach and has spread its equity allocations wide to achieve diversification. The asset manager prefers high-quality and short-duration bonds as a way of managing...