Unpicking the oil price plunge
Coutts Head of Asset Management Mohammad Kamal Syed examines the implications of ‘black gold’ dropping below zero this week.
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Just when markets appeared to be settling down, history has once again been made. This time it’s oil hitting the headlines as prices fall below zero.
What does it mean for Coutts portfolios and funds?
At Coutts, we don’t hold outright energy investment themes or funds in our portfolios, and we don’t hold any direct exposure to oil futures.
We do have exposure to oil companies in our diversified funds, but again we would expect those companies to be driven more by the longer-term oil price outlook than these near-term prices.
Focused on the future
This development certainly proves that we are living in interesting times. We have simply never seen anything like it.
But it is yet another short-term symptom of the coronavirus, not a long-term trend. And although it will take time, current historic conditions will one day become just that – history. We will continue to monitor developments, study the data and stay nimble when managing your investments through this period and into the future.
If you would like to talk about this in more detail, please speak to your private banker or wealth manager.
MOHAMMAD KAMAL SYED
Head of Asset Management
When investing, past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up and you may not recover the amount of your original investment.