Acumen Portfolio Performance YTD 2020
Commentary on Portfolio Performance – October 2020
Acumen & Trust’s portfolios weathered a choppy October period as volatility picked up, especially towards the end of the month. This was against a backdrop of heightened fears regarding (i) the economic impact of lockdowns in the face of rising Covid-19 case numbers, especially in Europe (ii) the on again/off again stimulus package in the US and a Presidential Election looming, and (iii) fears of a complete breakdown of Brexit negotiations. Nevertheless, economic activity in the 3rd quarter in the main markets rebounded very strongly. This suggests potential for a sustained rebound next year if a successful vaccine for Covid-19 becomes available.
The ECB left rates unchanged but announced that further stimulus measures will be unveiled in December. A change of leader in the US would likely increase spending in that region and drive yields higher. Gold was resilient throughout October when markets were at their most volatile. The precious metal was flat over the month in US Dollar terms and fell slightly in Euro.
Effective use of diversification across asset classes was instrumental in suppressing volatility in a see-saw month for markets.