Markets moved higher once again last week as multi-asset funds continue to build on the gains seen since the market lows of October 2022. The old adage ‘sell in May and go away’ has in 2023, so far at least, turned out to be nothing more than a nice rhyme. We of course will see how markets develop between now and the end of the summer. Looking at last year, it was Fed Chair Powell’s remarks at the Jackson Hole Symposium in August that sent markets sharply lower. August, a traditional holiday period, tends to see lower market trading volumes which can cause wider swings in trading ranges, and sees market movements accentuated. Nevertheless, last August proved as a timely reminder to always listen to Central Bankers, and always be wary of ‘fighting the Fed’.
The week ahead (more details below) provides several opportunities to hear from Central Bankers with rate decisions from the Fed, ECB, and the Bank of Japan. ‘Big Tech’, the clear market leaders so far this year, begin to report earnings with Alphabet and Microsoft reporting tomorrow. As always, plenty for investors to digest as another trading week commences.
As always, if you wish to discuss anything in further detail, please do get in touch.