Many clients hesitate to invest. They have often realised the reasons why, but want to hold back given we live in uncertain times. Rebecca Cretney highlights the points she raises in her conversations, as well as the advantages and disadvantages for the options to be considered.
The week of 11 October saw inflation increase higher than had been expected in the US and raised the prospects of action by the Federal Reserve in its November meeting. Meanwhile, growth forecasts for developed markets were cut slightly as supply chain issues continue.
During September, the economic and corporate environment remained positive, however some equity sectors are beginning to look fully valued.
The week of 4 October saw persistent inflation amid signs of slowing economic growth, with fears of stagflation stoked. While the US announced a disappointing new job number for September, but a fall in unemployment.
Rebecca Cretney was joined by Tom Caddick on 7 October at 12.30pm UK time to discuss recent trends in financial markets, how these might affect investors in the coming months, and how our portfolios are positioned to respond.
The week of 27 September saw inflation data in Europe surprising on the upside on the back of surging energy prices and ongoing global supply issues. It comes as central banks signal that interest rate increases are more likely sooner.
The week of 20 September saw some signs of a deceleration in the growth momentum across both Europe and the US, as supply chain issues continued to limit the goods and services available to meet surging post-pandemic demand.
The week of 13 September saw global markets mostly down due to continued concerns for inflation and concerns over economic growth. US inflation figures came in lower than expected, while UK inflation jumped to its highest level since 2012.
A home bias means holding a higher proportion of investments in your domestic financial markets than is justified by that market’s size. And many investors have far higher levels of assets invested in the UK than its global capitalisation in any asset class warrants. James Robertson highlights the reasons why this may be a bad approach.
During the week of 6 September, US job openings rose to a record high, while the country’s producer prices also surprised to the upside, as COVID-19’s Delta variant continues to exert pressure on global supply chains. In contrast, the EU appears to be focused on continuing to support economic growth.