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24 Jun 2016

Brexit

The Brexit vote to leave the European Union is a clear vote against the political establishment. The UK’s withdrawal process will not be simple, uncontentious nor immediate. However, under the bloc’s governing treaty, it must be completed within two years. 

Monetary and fiscal policy in the UK and EU is expected to remain highly accommodative to limit the economic fallout, with interest rates staying low or declining further.
  
Foord’s local and international portfolios will not be immune from the near-term downside volatility, despite the emphasis on quality businesses and conservative portfolio construction. However, longer term, the Brexit vote will have very little effect on the forward earnings of the businesses in our portfolios.

Volatile markets are the ideal time to accumulate quality businesses and position portfolios for the next up-cycle. All of Foord’s portfolios have relatively significant cash holdings, which may now be judiciously applied to accumulate quality businesses at lower prices, a scenario for which we have waited patiently.

Investors should take special care not to react imprudently by selling into declining markets.

Insights

02 Sep 2020

Investment Insight - In Conversation with Dave Foord

Dave Foord talks to Nedgroup Investments’ Rob Johnson about the events that unfolded over the last nine months and what experiences have helped him navigate the current situation.

Listen now

31 Aug 2020

The More Things Change...

The COVID-19 pandemic has dramatically and swiftly changed our living routines and operating habits. Future gazers have opined on how much of our daily lives will change permanently. But Foord Singapore analyst JC…

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