This year a number of macro-economic shocks have led to increased volatility in investment markets, and rising interest rates globally. The world has shifted from an extended period of low inflation and low interest rates to a situation which sees both these key factors more volatile, affecting asset prices across all major investment markets.
In our recent webinar Huw Wedlock, Director at The Fry Group, was joined by guest speakers Emma McHugh, Investment Strategist at Invesco, and Duncan MacInnes, Investment Director at Ruffer, for a discussion about the current market environment and a review of the investment risks and rewards available to investors. Attendees also took part in a poll about UK interest rates, with more than half responding that they expect rates to rise to 6% this year.
Do I need to be worried about market volatility?
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The webinar explored the key challenges which have faced markets during 2022, with a particular emphasis on whether rising inflation – driven by the fallout of the pandemic, Russia’s war in Ukraine and the ensuing energy crisis – has peaked.
Our speakers also looked at how investment managers are dealing with these challenges, noting that whilst many investors are concerned with current volatility, it’s important to accept that a new economic regime is here to stay.
With ongoing levels of volatility over the long-term, the webinar also concluded that inflation is likely to be higher on average than it has been in the past few decades and may well be choppier in general over the short to medium-term. In these extraordinary times, there is certainly a case for a more creative approach to investment strategy and more of a need for active management in portfolios to help take advantage of opportunities when they come.
To discuss any aspect of your investment strategy please get in touch with your nearest office.