Delicate equilibrium All eyes were on the world’s central bankers last week, who were guests of the US Federal Reserve (Fed) at its annual conference in Jackson Hole, Wyoming. Markets were particularly eager to hear what Fed chair Jay Powell had to say – hoping that...

Will a new PM be good news for investors? Here at Cambridge, we rarely talk about UK politics in our deliberations on markets. That’s not because we’re not interested. Rather, it is because domestic politics have less of an effect on the broader global assets that we...

Fear of missing out Investors are feeling FOMO: the “fear of missing out” once again. Last week was a continuation of the trend from the start of July – which has seen a significant boost to both bond and equity markets. Curiously, the good feeling among investors...



Markets bet on a perfect landing Bad news filled the airwaves last week. Faltering global growth, higher inflation forecasts and rising interest rates set a dour tone – capped off by a geopolitical crisis in Taiwan. UK investors were struck by the Bank of England’s...

Positive returns amidst negative sentiment For a second consecutive quarter, the US economy shrank in real terms. Yet the US Federal Reserve (Fed) raised interest rates by another 0.75% last Wednesday because the US economy is too strong. We write, in a separate...

Economy weakens but central banks persevere Global investors tend to be quite US-focused, as the world’s largest economy has an outsized impact on trends across the world. Last week though, attention was on the other side of the Atlantic. European economic data caught...

Too hot, too cold Investors’ rough ride continued last week. Markets are being buffeted by the ups and downs of economic data and the resultant changing expectations for central banks. We had unexpectedly positive UK economic growth during May, while the continued...



Markets not reflecting public fear The murder of past Japanese Prime Minister Abe is a reminder of how much we should value our public servants and politicians. We should be grateful to all our politicians that they are prepared to do a job we need so much. Whether...

Energy price shock turns into central bank focal point More than two years since the COVID virus hit Europe, it is clear that most peoples’ livelihoods have been affected more by the policy ‘medicine’ than the virus itself. Of course, without those interventions which...

Public sentiment vs economic realities Through much of this second quarter, the financial market narrative has been about inflation. Last week the Office for National Statistics (ONS) informed us that inflation as measured by the Consumer Price Index (CPI) rose from...



Linchpin oil price As central banks around the world were busy reasserting their authority and credibility as the guardians of monetary stability, the previous week’s stock market wobble turned into a fully-fledged rout last week. The growth concerns that preoccupied...

Reading between the lines After the resurging positive sentiment of past weeks, markets were last week once again showing signs of fragility – the mood was decidedly ‘risk off’. We could characterise this as growth scepticism, or more wariness that inflation will...



Rollercoaster for the Jubilee funfair Party stalls went up and libations flowed for the Platinum Jubilee. But no fairground is complete without some thrilling rides. Over the last month, capital markets chipped in with a rollercoaster of their own: equity indices...

As recession talk subsides, inflation pressures increase As we reach the final days of May, markets appear to be calming down. Stock markets achieved a positive week and credit spreads – the proverbial canary in the coalmine ahead of recessions – have come down...



Talking recession to fight inflation It has been another rocky ride week for capital markets, with inflation talk increasingly turning into chatter of an ‘inevitable’ recession, prompting the most recent cohort of DIY retail investors to throw in the towel. However,...