The early weeks of 2016 were dominated by a very nervous and negative market environment, with headlines at the time being dominated by talk of the potential for global recession and persistent fears about deflation. The quarter ended on a much more confident note, with risk assets including equities rallying strongly and confidence restored in the global economic recovery and the health of the corporate sector. This ‘tug-of-war’ between for example; growth or recession, inflation or deflation, rate rises or rate cuts is something we as investors are now well accustomed to. As for outlook, we at KBI remain in the ‘glass half full’ camp as we have done since the global economic and market recovery commenced after the 2008 global crisis. Market volatility remains a constant feature as do the supportive actions of central banks, which once again came to the fore during the second half of the quarter. As such the first quarter of 2016 in many ways was a quarter of two halves, finishing on a more upbeat note. I continue to see equity market dips as a buying opportunity.
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