The Insights
At TILLIT we are big believers in learning and broadening our horizons. Our Insight articles cover everything from the here and now in our Market reviews, to short and long reads about the fundamentals of investing, as well as unique thought pieces from leading fund managers in The Opinion, and much more.
Monthly Market Update - July 2023
Investors and analysts were left grappling with unexpected inflation figures and rate hikes in July, creating a dramatic narrative reminiscent of the contrasting characters of Barbie and Oppenheimer. During the month, there was a marked reduction in the UK inflation rate, while the European Central Bank raised rates. The US economy showed resilience, but there is now speculation about the end of the Fed’s aggressive hiking cycle. China's manufacturing sector continues to face challenges. The global bond market struggled, while commodities and gold saw gains.
Read moreMonthly Market Update - June 2023
June was a reminder of the complex relationship between economic indicators and market performance, leaving investors with a challenging landscape to navigate. Global economies experienced a mixed bag of surprises in June, with the UK's modest economic growth overshadowed by inflation-induced rate hikes. Meanwhile, Europe and the US grappled with lower-than-expected inflation rates. In contrast, Turkey's central bank took drastic measures to combat economic challenges, and China faced hurdles with shrinking exports and factory activity. Amidst this backdrop, equities managed to shine bright, leaving us intrigued about the future trajectory of these trends and whether equities can sustain their first-half momentum through to the end of the year.
Read moreMonthly Market Update - May 2023
The old adage of ‘sell in May and go away’ may not apply this year as investors seem to be looking through concerns such as a US debt default, high inflation and an uneven recovery in China. The economic outlook for the UK and Japan is improving and China is continuing its recovery, albeit unevenly. Even though the US Federal Reserve raised rates again, Fitch, the credit ratings agency, placed the US country's ‘AAA’ rating on watch for a possible downgrade as the growth investment style continued its domination in 2023, lifting tech indexes to almost double digit returns in May.
Read moreMonthly Market Update - April 2023
April gave investors some respite after an eventful March. Economic data remained resilient, although stresses in the banking system persisted. Equities continued to rise, bonds fared well though bank woes, wage inflation and the potential for a US government default weighed on investors' minds. Headwinds picked up once more at the end of April as we continued to see a fallout from monetary tightening in the financial sector. Another US bank closure increased investor concerns about liquidity risks which could lead to an issue of solvency.
Quarterly investment review - Q2 2023
Inflation was exhibiting signs of tentative moderation towards the end of 2022, leading many to believe the interest rate outlook in 2023 would moderate and therefore provide some guidance on asset pricing. It hasn’t quite worked out as hoped. Persistent inflation and challenges in the banking sector have put pressure on central banks’ interest rate policies, which has made for a pretty volatile first three months of the year.
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