After June’s correction, developed market equities posted positive returns in July as a bailout deal was reached for Greece and stronger economic data lifted investor’s spirits. As usual, there were winners and losers at a regional and industry level. Stand out performers across portfolios were Google and Amazon who both reported strong numbers. We have consistently made the case, even to the extent of having a friendly disagreement with our friends at Lex on Amazon, for investing for the long term in great on-line businesses.
July was a rewarding month for our unwavering approach to investing in companies that offer quality and value for the long term and not to be distracted by short term turmoil in financial markets.
Share prices were buffeted in the early part of the month by the negotiations over Greece’s bailout before attention turned to global growth concerns. Other highlights included wild daily fluctuations in China’s stock market as well as sharp falls in commodity prices. Oil ended the month down 12.5%.