September Commentary
UK MARKETS
Weak first half followed by a late month rally
UK equities mirrored global trends, with a weak first half followed by a late month-end rally. However, returns lagged other developed markets. Unlike the US, there was little difference in performance across the market cap spectrum. Despite better inflation data in the previous month, August showed more modest progress. That, and concerns over the scale of future gilt issuance levels, as well as a continued hawkish tone from the Bank of England, saw short term Gilt yields move higher, with 2yr Gilt yields moving up from 4.99% to 5.16%.
Down -3.3% (UK All Share)
Compounding – “The most powerful force in the universe.”
So just what is compound interest?
You may already be familiar with the concept of earning interest such as through your bank account. You put in £1000, the bank pays you say 2% per year and at the end of the year you’ve earned £20.
It doesn’t sound much I know. However, compound interest refers to the interest you then earn on that £20, so you have earned interest on your interest. This means even if you didn’t put more money into the bank, the amount you earn increases each year.
August Commentary
UK MARKETS
Inflation continues to impact sterling and UK markets overall
Disappointingly strong core inflation data precipitated a 0.5% Base Rate increase from the Bank of England (BoE), to 5%. The greater than expected June hike pressured short-duration sterling bonds. After a torrid start to the year, longer-dated bonds found some solace in the more hawkish BoE stance. The stronger pound was supported by the bond market pricing in a Base Rate of 6% by year end. Impacted by the strong pound, UK equities, particularly the more economically sensitive mid-caps stocks, lagged most other developed markets.
Up 0.7% (UK All Share)
Gilts - Time to Stick a Toe in the Water?
Despite its recent weak economic performance, China’s return to the markets will have an impact on oil going forward.
Unlocking Your Financial Style: Explore Your Money Personality and Find a Portfolio to match
Ever thought about what kind of money personality you have?
We like to think of it as being one of three types: The Saver, The Spender, or The Investor, each with its own unique money personality, and its own style and way of handling their cash.
We'll help you figure out the different money personality definitions, explore their investment behaviour to discover which one you are and chat about the kind of investment strategies that could be your perfect match.
Oil - Back in Black
Despite its recent weak economic performance, China’s return to the markets will have an impact on oil going forward.
July Commentary
UK MARKETS
Inflation continues to impact sterling and UK markets overall
Disappointingly strong core inflation data precipitated a 0.5% Base Rate increase from the Bank of England (BoE), to 5%. The greater than expected June hike pressured short-duration sterling bonds. After a torrid start to the year, longer-dated bonds found some solace in the more hawkish BoE stance. The stronger pound was supported by the bond market pricing in a Base Rate of 6% by year end. Impacted by the strong pound, UK equities, particularly the more economically sensitive mid-caps stocks, lagged most other developed markets.
Up 0.7% (UK All Share)
Big in Japan
After languishing behind its western counterpart for years, is it finally time for a Japanese renaissance?
The Bank of England’s Mulligans
If monetary policy is akin to playing a round of golf with only a driver (i.e. interest rates), then the bunker that Andrew Bailey finds himself in just got a whole lot deeper after the recent 50 bps rate hike.
June Commentary
UK markets fall despite better than expected economic data
Whilst economic data was generally better than expected, and the IMF and BoE both abandoned their UK recession forecasts, markets were agitated by rising Core CPI inflation, which helped drive Gilt prices lower. Weaker commodity prices and a rotation away from traditionally defined value sectors saw the FTSE100 decline by -5.4%, though the FTSE250 was slightly more resilient at -3.6%. The Oil sector was particularly weak, dropping -11.6%.
Down -5.1% (UK All Share)
