Dear <<First Name>>
Global stock markets have fallen dramatically in the past week after Federal Authorities announced the US economy is doing remarkably well and furthermore that they predict this continuing for the foreseeable future.
This news of a healthy economy has triggered stock markets into anticipating early rises in interest rates... and also, as a consequence, into anticipating rises in the yields paid on US Treasuries... the equivalent of our UK Gilts.
Interest rates have been at rock bottom levels for so long that any potential increases are now seen as a 'threat'... bringing confusion about their impact on companies and business sectors, at home and abroad.
Once again, these extraordinary falls highlight the lemming-like behaviour we have all too often witnessed over recent years, albeit negative behaviour is less commonly associated with a celebration of a major economy in bloom!
Whilst we do not have a crystal ball, we believe this situation will not last for very long and markets (and thereby your portfolio values) will recover, to ultimately reflect the prosperity now being experienced around the World.
Consequently, we do not plan to make any changes to your investments under current circumstances but, as ever, we will keep a close watch on developments.
Do feel free to get in touch if you would like to discuss your current requirements.