Dangerous times

We have formed the opinion that there is a more than 50% chance of significant falls in equity markets both here and overseas. To protect shareholders we have been selling any equity which appear to be weak in any way – fundamentally or technically – and we have applied more stringent criteria. Listed equities now represent less than half our portfolio.

Trump in charge of the US; Philippines taking on China in the South China Sea; voters going feral. Not a thing could go wrong. And now US Federal Reserve talking of selling bonds, reversing QE.