Two red-eared terrapins bookend a pair of ducks and a cormorant at Chiswick House yesterday. While the gardens have evolved the basic layout is William Kent’s and almost all his eye-catching features remain, including Burlington Gate.
It is a welcome distraction from the likely bumps in the road (as the Prime Minister put it). America and China have declared war, albeit an economic one. The EU, weakened by the secession of the UK, has a belligerent Russia on its doorstep at the same time as coping with economic woes. The UK economy will not react well to leaving the EU. Gold is at a five year high: interest rates in some cases are negative; sterling is at its weakest since the 1980s, although this does have some benefits. As the sky darkens, over-shadowed by black clouds rolling in presaging economic storms is there anything to cheer me up? As it happens, yes.
China has imposed new tariffs on imports of American soyabeans. This has led to a recovery in palm oil. It hit a low of $450 at the end of last year and now is about $550. It may not improve much more as the advantage the tariff war confers will be offset if there is a general economic downturn that may be bad for demand. Secondly, there are signs that some Chinese business is migrating to Vietnam to evade American tariffs and benefit from lower production costs. The Vietnam funds I picked last year are beginning to reflect this.
I reckon it’s time to batten down the hatches. I’m not going to dash for cash. I hope that the funds I have chosen are structured to ride out the stormy weather that I envisage ahead.