Them and US

The Standard & Poor’s 500 Index (S&P 500) scaled a fresh record yesterday, as traders awaited more clues from the Federal Reserve on the timing of any cuts to stimulus amid budget negotiations in Washington.

The Dow Jones industrial average gained five points, to finish at 16,026. The S&P 500 gained three points or 0.18%, to end at 1,808, a record closing high. The Nasdaq Composite added six points or 0.15%, to close at 4,069.

Speeches from several policymakers on Monday signaled the Fed may be close to trimming its $85 billion a month in bond purchases and it is widely thought that the US central bank will begin trimming this quantitative easing programme by March next year.

At OCM one of our key objectives is capital protection, and it is with this and the renegotiation of the American debt ceiling in mind that we have reduced our exposure to the US as we see under performance during Q1 in 2014. Conversely we see opportunity within UK markets and have allocated accordingly, mainly to smaller companies funds rather than mid and large cap where interestingly we have seen lower volatility as they generate more of their income domestically.