Simon places the current Middle East threat in historical context. Beyond this week's events he argues that, while an outright negative outlook may not be appropriate, the risk-reward profile has weakened since the spring. He highlights stretched valuations, a deteriorating margin and growth outlook, considerable policy uncertainty and cracks in the labor market as reasons for caution (along with selectivity, discipline and portfolio balance). He discusses a new name to the WIG portfolio in MKL and offers the latest around WFC and AVGO.
WIG Names: MKL, WFC, AVGO
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