Good morning,


Last week gave us plenty to chew on in relation to market news, with rate hikes from the Fed and the Bank of England, along with a strong US jobs report. On Wednesday, US equities saw a wild swing as the initial Fed statement was interpreted as meaning interest rates would not need to go as high as previously thought. However, markets sharply reversed course (with equities lower, and two-year treasury yields higher) about 40 minutes later as Fed Chair Powell clarified in the press conference that rates will indeed move higher, just perhaps not at the pace previously forecast.


Friday did little to provide clarity for investors as the monthly US non-farm payrolls report (more info below) came in better than expected. This is, of course, a positive for the US economy, but in recent months equities have reacted negatively to encouraging data, as it infers the Fed will have to continue tightening to get inflation under control. Not so on Friday, as good news was in fact taken as good news.


The above points are admittedly nuanced but go to highlight the complicated nature of market events at this time and the importance of not getting distracted by short term noise. Investing with a consistent manager and keeping a firm focus on your own financial plan remain key principles of long-term investing


As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.