Good morning,


Markets slipped once more last week, as the shifting monetary policy backdrop continues to negatively affect both equities and bonds. More defensive equity positioning can help during such periods, as can shorter duration positions on the fixed income side. However, global bonds are now officially in a bear market, and have endured their biggest drawdown since 1990 (when Bloomberg started tracking a global index). Within such an environment there are very few hiding places during such short-term movements. However, focusing on longer term returns and sticking with a tried and tested investment process remains solid advice.


Such enduring investment principles are worth discussing with clients on a regular basis, particularly on days such as today where equities are making negative headlines because of gas price movements over the weekend. Gazprom announced on Friday that a technical fault would extend the closure of the Nord Stream 1 pipeline. It is hard not to see this as anything but pressure being applied because of the G7 proposals to put a price cap on Russian oil. Political pressure looks set to mount with the ensuing energy price rises leading to protests across Europe. A Winter of political discontent looks inevitable, the resulting impact on investment markets is less clear.


If you have any questions, please do get in touch.