When the risk appetite of investors is tapered due to
changing market sentiment, they choose 'flight to quality'
investments such as safe-haven-assets, such as Gold, to protect
their investment portfolio against further losses.
A move that has long been as visible as during the month of
May, 2019.
The Main Markets
Stock markets ended the month discernibly lower across the globe
with their worst monthly return since December 2018. Average global
stock returns at end of May:
- US Tech -9%
- Japan -8%
- EM -8%
- US S&P 500 -6%
- Europe -6%
- China -6%
The US-China Trade War is continuing and additionally we have
been taken by surprise by the announcement of the US planning to
impose tariffs on Mexico in the coming weeks resulting in yet a
further downturn in the market. May also marked a price fall in
commodities, led by oil which dropped 8% on a week and a cumulative
of 15% over the month of May. Since the financial crisis, the
3m/10y yield curve is the
