What our investment partners say
As promised, this week I’m providing an overview of what some our investment partners (LGT Wealth, JPMorgan, LGIM and Foresight) think about the outlook for markets, along with other investment analysts. This is one of those occasions when you’ll need to make a bit of time and sit down with a good cup of coffee,or something else you are partial too.
We conducted our quarterly assessment by engaging with respective fund managers and representatives of each company to understand their thoughts. We receive frequent updates from them all and benefit from their huge amount of research on an ongoing basis. However, it’s always good to reflect on what has happened, as in many ways this informs what is likely in the foreseeable future.
Investing is clearly not an exact science but despite frequent setbacks we are seeing a positive direction of travel for both equities and bonds since the lows in October of last year.
A quick look at what’s happened in Quarter 1 of 2023
Bonds and equities were broadly in positive territory for the first quarter of this year but it hasn’t been plain sailing!
Sanjay Rijhsinghani, the Chief Investment Officer of LGT Wealth summed the quarter up nicely:
- The early part of the year saw growth moderating which excited the markets as it was believed we were coming to the end of the interest rate cycle.
- Then hopes were dashed somewhat in February due to data demonstrating that economies appeared more resilient than expected, helped by lower energy prices.
- The strong opening of China was a positive for markets, giving the likes of Europe a significant trading boost.
- Then the ‘mini’ banking crisis placed pressure on bank lending which is believed to have a created an impact equivalent to an interest rate rise of between 1-1.5%.
- Central authorities reacted quickly though to bring calm and stability.
Want to continue reading?
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Risk warning
Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.