Stocks struggled once again last week as bond yields rose further – which unfortunately meant there were very few hiding places for investors once again. A theme that has been repeated consistently in 2022. In trading yesterday evening, the US ten-year bond yield briefly broker the 3% level – its highest level since December 2018 and double the level from the start of the year.


As we all know investment markets tend to be forward looking, and the near certain 0.50% interest rate hike from the Federal Reserve this Wednesday has been behind much of the yield rises in the US. The Bank of England look also set to raise rates by 0.25% on Thursday, which would put them at the highest level since 2008. The ECB has also turned more hawkish in their commentary on the back of recent inflation data (more info below).


At Zurich, we maintain our view that the recent geopolitical unrest has resulted in an acceleration of exiting structural trends and that there is a secular shift occurring in monetary policy; triggered by the recent inflation spike. We look on expanding on such thoughts, along with a number of other topics, at our upcoming Investment Conference ‘Active Management Matters’ on Tuesday 24th May. This marks our return to in person events and further information will be circulated this week.