August 2023
- Inflation is falling in the US, the UK, and globally. UK base rates are now 5.25% pa and set to move higher still. House prices continue to fall an expected reaction to rising interest rates. The clutch of global stocks that were moving higher are showing weakness now and there is definitely a tempering of confidence in the investment market.
- There is still no clear idea on the depth of recession/or if any recession will come to pass, the terminology being used is hard landing, soft landing and no landing. “No landing” is meant to describe “no recession” making the other two meanings easy to work out.
- Even though global inflation is slowly being addressed, interest rates continue to rise and this is because there is concern that inflation rates may not reduce to the 2% pa figure the BoE and other central banks aim for.
- Tensions between China and America have improved slightly, but the geopolitical risks remain. The damaging war in Ukraine continues as we all know and the geopolitical risk this gives rise to cannot be overstated.
- Japan stock market performance is levelling and more reflects the European stock market investment performance.
- At annual review FFP continue to adjust client portfolios that consider the changes to the global economy as referred to above.
Please note that:
- This information in isolation is not financial advice.
- Past Performance of investments is not to be relied on and the value and the income from investments can go up as well as down.
- It is advisable to regularly review your investments.
