A full back catalogue of articles, podcasts, videos and useful materials from Architas and our global partners covering a variety of key topics on investments, multi-manager investing, financial markets, macroeconomics, ESG and Megatrends to aid your investment journey and broaden your knowledge.
China might be easing its strict zero-Covid policy, following a month of widespread protests and a sharp slowdown in economic activity. Despite record high infection levels, there appears to have been a shift in emphasis recently.
The pandemic boom time appears over, as US tech giants announce staff layoffs in vast numbers. Intel signalled thousands of job losses, aiming to cut $10 billion in costs by 2025. Meta cut 11,000 jobs, its biggest retrenchment yet.
Western central banks crept closer to a pivot point, led by the ECB which hinted that ‘substantial progress’ on inflation has been made. Meanwhile eurozone inflation touched another record high at 10.7%.
The International Monetary Fund issued a stark warning over the health of the global economy, saying it saw rising risks of a recession in 2023. Hopes rose that the deteriorating economic outlook might cause central banks to be less aggressive in raising rates to smother inflation.
A US court issued a deadline of 28 October for Elon Musk to complete his $44 billion bid for Twitter. And he agreed. The question remained as to why, after months spent refusing to pay up for the allegedly bot-ridden social media platform, the deal was suddenly back on.
When the going gets tough in financial markets it is sensible to have a diversified range of assets. Historically, market conditions can allow one asset class to hold up at times when another is struggling.
Rhetoric from western central banks remained resolutely hawkish, with the European Central Bank (ECB) promising growth concerns would not prevent a ‘forceful increase in interest rates’. Inflation risks were widely acknowledged as tilted to the upside, as eurozone inflation touched a record level of 10%.
In the UK, the new government, headed by former Foreign Secretary Liz Truss, froze energy costs and announced the largest tax cuts in 50 years in an attempt to stimulate growth. The spending was unfunded, causing the Bank of England to intervene as the British pound and UK bond prices tumbled amid fears of unsustainable levels of UK borrowing.
Events aligned to push the dollar to its highest level for 20 years. The Fed announced a 75 basis points interest rate hike, while the Bank of England slowed its anticipated hiking pace in response to growth fears.
It’s natural for investors to be strongly influenced by current market events, and previous feelings of euphoria when markets were moving higher may now have turned to feelings of fear and desperation. We look at how investor emotions can change during different points of financial risk and opportunity as the markets move.
US inflation data ticked lower at the headline level, although rising core inflation pushed back any hopes of a ‘Fed pivot’ on interest rates. Indeed, rhetoric from the US Federal Reserve (Fed) remained resolutely hawkish, with inflation control still the top priority.
China struggled to contain broad-based Covid outbreaks, as it stuck to its strict zero-Covid policy. The People’s Bank of China cut borrowing costs as economic data revealed that growth remains weak in the face of sporadic lockdowns, the ongoing property crisis and a severe drought which has led to power cuts.
High on the list of market worries at mid year was the risk of stagflation. As inflation hits multi decade highs and economists slash forecasts for GDP growth around the world, it’s not difficult to see why alarm bells are ringing.
From lows touched in mid-June, when the Nasdaq was 30% off its highs, the tech sector has enjoyed a rally. Why? In part it’s a natural rebound from the sharp falls of the first half, with investors keen to pick up their favourite stocks at bargain prices.
The US Federal Reserve (Fed) raised interest rates by 75 basis points for the second time in two months, taking them to a range of 2.25% to 2.5% - a level that is considered to be ‘neutral’ for the economy.