UK Market Commentary – February 2020

Global equity markets saw their first major correction since late 2018 as the Coronavirus outbreak, which was largely downplayed over the last few months, began spreading outside of mainland China.

The spread of the virus has disrupted manufacturing supply globally and also caused panic among investors, weighing on consumer demand for goods and travel.

Stock markets have erased year-to-date gains, however, by broadening our scope we observe that markets are still up over +20% since the beginning of 2018.  Additionally, U.S. dollar strength during this period have helped U.K. portfolios, most of which still have gains year to date.

Our portfolios have exhibited the volatility we expected in designing them; namely, the more aggressive portfolios had the biggest swings, while our very conservative portfolios exhibited much more stability. Gold has also performed quite strongly, functioning as the safe haven hedge in portfolios.

Wahed continues to adhere to the the tested philosophy of investing with a long-term time horizon and cautions against reactionary responses to market sell-offs in attempts to time the the market.

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