Pavan Sharma

We expect markets to remain volatile. A rebound in oil prices recently had helped, however oil slumped in late trade as short term demand is still questioned despite the possibility of Saudis and Russian cutting production.

Global markets were mixed overnight with the US market (S&P 500 +3.4%) adding to its rally as Bernie Sanders dropped out from the Presidential race -the market saw political and economic concerns from his far left policies.

While a welcome rally, we are still not out of the volatility yet and investors should stage into the market with caution.

We think it is time to start “averaging into” stocks, as it appears the market is starting to now differentiate between the stocks and sectors which will face major problems for an extended period and those which are relatively immune.

It does appear the market is starting to now differentiate between the stocks and sectors which will face major problems for an extended period (e.g. retail/ tourism / airlines / property trusts), and those which are relatively immune and / or benefit e.g