Due to a computer glitch on US trading systems, the Dow Jones experienced a drop of over 1000 points yesterday. As yet there is no clear indication as to what caused the glitch however the NASDAQ has already said it will cancel all trades from yesterday. The glitch happened at 2.40pm New York time. Despite the fact that the market quickly returned to its previous level, this had an effect of spooking Wall Street investors. Coming at the same time as the UK General Election and the Greek debt crisis, the effect has been to depress world equity and commodity markets.

It is our view that this is a temporary crisis. First quarter earnings results have by and large beaten expectations and the equities and commodities still look relatively cheap. Once the Greek Debt issue is resolved markets will revert back to growth. For that reason we are holding with our existing investments.