Insight

The 0.2% miss that cost the equity market 5%

The biggest issue in markets at the moment is the worldwide central bank battle against inflation. Continue reading

The summer months are typically characterised by limited news, thin trading volumes and illiquid conditions which, can serve to accentuate moves in financial asset prices both to the up and the downside. The summer of 2022 has proved an exception.

Why invest surplus cash?

To benefit from real investment returns over the longer term.  The Bank of England base rate is currently 1.75%, with the target rate for inflation set as 2%.Continue reading

Recession Rally

So far in the third quarter of 2022 risk markets have rallied very strongly. This is pretty strange given that central banks have aggressively increased interest rates and talk of recession abound!Continue reading

The investing environment could hardly be more challenging. Global economic activity is slowing, Western developed economies are flirting with recession, inflationary pressures are extremely elevated, and Western central banks remain committed to raising interest rates in a concerted effort to bring them under control. The geopolitical backdrop is still as dark as ever; the war in Ukraine continues, China’s bellicose threats against the United States ahead of House speaker, Mrs Nancy Pelosi’s visit to Asia have become more pointed. Europe faces a natural gas shortage over the coming winter, Dr Mario Draghi’s Italian government has collapsed, while in the UK, the same fate has befallen Mr Boris Johnson’s administration.

More than 200 years ago, a French military officer stumbled across the Rosetta Stone, a 2000-year-old carving with clues to deciphering the Egyptian hieroglyphs that had puzzled the world for centuries. We don’t exactly have a Rosetta Stone for our perplexing market’s future – no one does. But just as the Rosetta Stone opened a window into Egypt’s mysterious past, we have some clues that might help investors crack the code in the coming months.

FOMC Fallout

After yesterday’s post, we felt it necessary to provide a post-Fed meeting update. It is widely accepted that this Fed meeting was ‘the most interesting in 30 years’ given the state of the economy, policy and markets.Continue reading

FOMC Fear 

Today the US Federal Reserve (Fed) Open Markets Committee meet and this is the meeting where interest rates are set.Continue reading

Every year is different from what you expect, and that is particularly true in financial markets. It is easier to say over the first five months of 2022 which investment areas have lost you money, especially if you also factor in the enhanced inflationary backdrop. There will always be some element of volatility in financial market investment, but it still plays the most essential role in any pension fund portfolio or medium-term financial target. What really matters is maintaining confidence during times of uncertainty.

Whilst the spring weather continues to warm, plenty of financial sector issues continue to worry global investors across both equity and bond markets. Meanwhile heightened inflation levels continued to impact bank account balances, and the war in Ukraine has led to many tragedies along with heightened geopolitical, commodity and supply concerns.