The FTSE 100 started the year at 6,242, by the end of September it was 6,899, and having reached a new intraday high of 7,129 on 11 October, ended the month of November at 6,784.
Following the US Election result, investor focus quickly shifted to the policies President Trump might pursue. The potential for tax cuts and infrastructure spending has driven equity market performance purely by sentiment as there is no certainty as yet as to what the new president will actually implement in office. Resources stocks have fared well in expectation of infrastructure spending and due to the OPEC production cut to support oil prices. This is presenting a short term headwind to some of our carefully chosen UK Equity Income funds, which either do not invest in resources stocks or have limited exposure. We retain our conviction in their long term potential based on their focus on robust companies with good cash flows and sustainable dividends.