Trustnet Magazine 61 April 2020 | Page 30

Your portfolio
profit margins and truck shipments).
These data points are then assessed
on whether they are in expansionary
(green), cautionary (amber) or
recessionary (red) health.
Mosaic
Portfolios
To minimise risk,
we leave no
stone unturned
Warning signs
The underlying causes of each
recession obviously differ, but Jeffrey
Schulze, investment strategist at
ClearBridge, says money supply,
credit spreads and new orders will
commonly offer the earlier signals.
Addressing today’s situation,
Schulze says the size of the US fiscal
package is crucial, as is clarity of who
will be in receipt of the support, with
small businesses
paramount.
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Glossary
Range trading
A strategy in which a trader identifies
oversold and overbought areas, buying the
former and selling the latter
Variance swap
A derivative used to hedge or speculate on
the price volatility of an underlying asset
“If you look at the proposal put out
by Republican leaders, it appears they
are looking to give small business
relief of around $300bn,” he explains.
“This is a very important component
of the tax package and it’s the one
The new Mosaic Portfolio range from FE Investments
delivers a choice of solutions to match your clients’ risk profiles.
Carefully crafted using a selection of holdings – or ‘tiles’ –
across asset classes, they are designed to maximise diversification
and protect your clients’ wealth.
Find out more at fefundinfo.com/en-gb/mosaic
Capital at risk. For financial advisers only.
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which is authorised and regulated by the Financial Conduct Authority.
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