Jubilee delays product launch as market too high
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The products were due to strike on August 7 but the firm has held off until next month to benefit investors.
Senior partner Ian Millward says: “If we are right this will ultimately reward investors.
“Trying to call the market is generally a pretty dangerous game to play – but just occasionally there are times when it is the right thing to do.”
Jubilee believes the current bull run which last month gave the FTSE 100 its best monthly gains in six years will come to a halt in September when traders return to their desks after the summer break and confront the realities of higher unemployment and reduced consumer confidence.
Millward says: “This will in turn engender profit taking as investors are generally still risk averse, and any uptick in volatility from summer’s low levels will lead to a correction in share prices.”
Millward says the rally is not supported by recent economic data or driven by any great conviction or weight of money.
He says: “Our longer term view is that there will be significant investment opportunities, but in the short term there is little to suggest that this is anything more than an unsustainable collective sigh of relief.
“We believe by delaying these investments until 25 September there is every chance investors will benefit from a lower entry point.”
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