The FT fund continues to hold up well in difficult markets, helped by its US positions. The substantial holdings in cash and short-dated bonds provide some stability, though not much return. But I have found something new to worry about, so have not yet put the cash back in to shares. The trade war between China and the US has just got more toxic, while at the same time there is a trend to higher rates and tighter money in many countries.
China and the US are sizing each other up. This painful and dangerous process is bad news for share markets, which have to watch and hope no serious damage is done. The US does not want China to make more rapid progress to being a leading global superpower and feels the time has come to cut the country down to size before it establishes too much authority and clout around the world. China, playing a long game, does not wish to provoke a conflict while the US is much stronger militarily and technically, but intends to press on with its expansion plans.
Markets have been poring over the deeds and words of the trade conflict, but need also to examine the strategic and political battles that are raging. The trade issues are more difficult to settle, given the other tensions.