Author — Martin Young, CEO of Farringdon Asset Management

Global Macro Review

• Major Markets rose with FTSE 100 reaching all time high levels.

Japanese Markets

• There are speculations that Bank of Japan intervene in the Yen valuation, but it has not been confirmed.
• The Yen dip to 160.03, which is the first time since 1990.
• However, the Yen later recovered and jumped 2%.
• Bank of America estimates that the intervention may have been as much as USD 32 billion.
• In March 2024, Bank of Japan ended negative rates, but the Yen has been hit by dollar strength caused by higher US interest rates.
• Rates in Japan remined at 0.1%
• Reasons investors rarely invest in Japan is due to the inverse relationship between the Yen and Nikkei.

US Markets

• Market driver is the release of the US Non-Farm payroll which came in at 175,000 new jobs created in April 2024.
• In comparison to historical data, this is well below monthly levels for the past few years.
• However, markets took the news in positive stride. Speculating that a soft landing and interest rate cut will happen this year.
• As a result, Equity market rallied.
• Warren buffet’s Berkshire Hathaway held its annual meeting last week.
• Warren Buffet sees great investment opportunity in India.
• Berkshire is increasing their cash pile by selling down stocks.
• Buffet main success factor is utilising the power of compounding through time in market.

Farringdon Market View

• Advisor should start to trim exposure in high-risk securities to cash or bonds in May.
• Then move portfolio towards equity around Quarter 4 of the 2024.

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Farringdon Capital Ltd is incorporated in the Dubai International Financial Centre (DIFC) under number 4190, and regulated by the Dubai Financial Services Authority (DFSA).

The information contained in this document is for information only and should not be taken as a recommendation to buy or sell. Investors are reminded that past performance is no indication of future performance.