“Sometimes life is going to hit you in the head with a brick. Don’t lose faith.” Steve Jobs

We were wondering if there was an appetite among our subscribers for us to host an evening to explore some of the themes in our blogs and what we will focus on in the year ahead. Also, try and answer some of the questions you may have. If you think this may be of interest, please would you email Sally@Frankinvestments.co.uk. Depending interest will decide the venue and timing.

US equity indexes pushed back through record highs at the start of the week. The best excuse for the recent recovery seems to trade talk hopes. No one in the financial capital markets can find a better explanation. Equity indexes, on Tuesday, around the globe were left largely unchanged. As we approach Halloween and fireworks night, the next few days may have a trick or treat waiting for investors and possibly a few firecrackers released. Not just in school playing fields.

The UK looks as if it is likely to have a General Election before Christmas, at least those who wanted a people’s vote will get their chance. Boris enters the polls with a decent lead. One can only hope that, after three years of indecision and stonewalling, that this could be the catalyst for a resolution.  The sentiment feels as if it is turning towards UK equities. Fund flows into UK equities, according to recent surveys, have picked up. Having attended a Wealth Manager Conference on Tuesday, a straw poll in the room supported the view that investors are looking to add to UK equities. Alongside this, the weakness in sterling has made UK assets look cheap in the eyes of the overseas investor. We have already seen some corporate activity this year, should the Brexit uncertainty come away, it is possible we will see more.

Later on Wednesday, we get the press conference that follows the US interest rate announcement. There are very few economists in the world who have not already pencilled in a 25-basis point cut. Assuming that is the case, the fireworks may come from how Jerome Powell handles the press conference. The US economy has slowed all year, there was genuine concern that a recession was possible late this year or early next. That view seems to have faded into possibly later next year. For this reason, will Mr Powell become more hawkish in his commentary? How will equity markets react, if the yield curve starts to flatten again?

Donald Trump may be in for a tad of a Nightmare on Capitol Hill on Thursday as the House votes on whether to impeach the president. Paddy Power, for what it’s worth, has him 1/3 on to be impeached before his term ends. As much as the investment community, and possibly the wider community, feared the arrival of Trump in 2016, equity markets, have done well. The same can not be entirely said for the US economy. Should he be impeached, that could be something of a catalyst for a correction. Although the correction may be muted as impeachment will not necessarily lead to loss of office. Possibly, more importantly, it could be seen to hurt his election chances next year.