March Market Update: Global Vaccine Rollout and Positive Results Drive Overweight Allocation to Growth Assets
On the back of strong results through reporting season, both domestic and global equity markets have rallied during the first quarter. While fixed income continued to face the same difficulties it did in February, continuing to move negatively, with the Australian market slightly outperforming its global counterparts.
As we have touched on in previous updates, as the vaccine rollout continues, and the economic environment improves then we expect yields to move higher as we get closer to the end of the calendar year.
We remain well underweight to fixed income across Infinity portfolios. As discussed in our reporting season wrap up we have seen some really encouraging data points for equity markets. These drive our reasoning for maintaining our overweight position in equities relative to fixed income moving forward, and we do not see that changing anytime soon.
This does not mean it will all be smooth sailing for equities, we know there will be challenges, but we remain very constructive on growth assets across the board. There are longer-term growth themes present in financial markets and outside of equities were looking at alternatives, through private equity and other longer duration assets to capture these.
As always, if you have any concerns or queries about the portfolio’s or you would just like to discuss any issues, please feel free to reach out to your advisor.
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