What are we talking about? At some point we think inflation will begin to slow. We’ve said that before (as have lots of other people), but we think we are seeing some grounds for optimism. Why could inflation fall? Despite very high inflation, there are a few reasons for cautious optimism. First, lets channel our […]
Since the last few months of 2021, we’ve witnessed a sharp increase in inflation. The Consumer Prices Index rose by 9% in the year to April 2022, up from 7% in March. The Bank of England expects inflation to surpass 10% before the year is over. These kinds of levels haven’t been seen since the […]
As a wealth manager, inflation plays a key role in how Moneyfarm operates. It’s a large part of the reason our customers invest in the first place, with inflation-beating returns being the name of the game over the long term. In the UK, inflation is currently the highest it’s been in a generation, but what’s […]
What are we talking about? Last week saw a flurry of Central bank activity. First, the US Federal Reserve hiked rates by 75 bps for the first time since 1994. Then the Bank of England raised rates by 25 bps, and indicated that UK inflation could exceed 11% year-on-year in the fourth quarter. What does […]
The past two weeks have been particularly eventful for financial markets. A stream of news has added further turmoil to an already uncertain environment. The first thing to hit investors was the release of US inflation figures for May. The Bureau of Labor Statistics published a figure that exceeded expectations, an 8.6% rise against the […]
Anyone looking to invest right now will be confronted with a degree of uncertainty. We’re in the midst of market volatility caused primarily by a combination of high inflation and the ongoing crisis in Ukraine. With Central Banks raising interest rates to combat the inflationary pressure, financial markets have had a rocky time since the […]
What are we talking about? The ECB called an emergency meeting on Wednesday to discuss “fragmentation” in the Eurozone, and possible ways to mitigate that. The meeting comes in the wake of a widening of the spread between Italian and German government debt over the past few weeks. What do we mean by fragmentation risk? […]
What are we talking about? One of the Asset Allocation Team got a birthday surprise on Friday, courtesy of the US Bureau of Labour Statistics. It wasn’t a good one. US inflation for May came in above expectations (8.6% you versus a Bloomberg consensus of 8.3%). Digging into the details didn’t provide much solace. Take […]
What are we talking about? With all the focus on the ECB last week, we wanted to look at some possible contrasts between China / Emerging Markets and Europe. Looking at their equity performance, there doesn’t seem to be much difference – the chart below shows the YTD performance of a European Equity ETF and […]