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,...

Bear market fear as another tech bubble deflates To some investors it will seem the old investor adage of ‘Sell in May and go away’ has once again proven correct, especially when the US S&P500 fell within touching distance of that bear market threshold of -20%...

Market noise is almost deafening The last week of April was like being on a roller coaster. We had rather hoped that the ride was almost over, but in fact it’s only been getting wilder. For the past five weeks, the asset markets have been displaying greater...

Range bound markets – despite the drama Equity markets have been range-bound through the past few weeks, but it does not feel like it. Volatility is at its highest since the nasty period in March 2020, which always raises our perceptions of potential downside. But the...

Finely balanced Easter week was a bit mixed for investors – and this was not caused by fears that populist Marine Le Pen closing the gap to incumbent French president Emmanuel Macron may have heralded another major political upset in the 2nd and final round of the...

Easter review and outlook The annual rate of inflation, as measured by the consumer price index (CPI) was reported at 7% in the UK, 8.5% in the US and even Germany recorded 7.3%. These are heights not seen for 40 years and were unsurprisingly front and centre of last...

Q2 begins with QT top of the agenda Are we entering a period of global equity market consolidation? The chart below shows global equity and UK equity total return indices from the onset of the pandemic to now. In aggregate, global markets have managed a decent enough...



Yield curve inversion – no April fool It is the beginning of April, but after living through the events of this quarter, few seem in the mood for the usual April fools’ jokes. While UK consumers braced themselves for a surge in their cost of living – as the UK’s...

Better news is not always good news Another good week for global equities, but a poor one for global bonds. Of course, that hides some disparity in the subsections that make up both markets. In the broadest sense, the US Federal Reserve (Fed) said interest rates will...

Changing tides Last week we reminded portfolio investors of the importance of making sure that long-term investment decision-making is not overly influenced by short-term market fluctuations. Here at Cambridge, we aim to ensure portfolios remain positioned...



Positioning for the energy price shock Global capital markets continued their wild ride last week, as market participants struggled to gauge by how much would Putin’s barbaric war on Ukraine dismantle their 2022 outlook for the global economy. Wild equity market...

  A double edged sword During the course of the past week, the impacts of the war on global financial assets changed in nature. Last week, we wrote that minor sanctions were a help for asset prices even if the sanctions did not match the level of outrage. The...