Each month our investment team provides a summary of stock markets around the world. We analyze what has happened, what we think will happen, and how best to position portfolios for their optimum risk-adjusted return.
April brought warmer temperatures to the UK, but for investors, there was stormy weather. Central banks have been grappling with how to bring inflation under control, culminating in the Federal Reserve’s 50 basis point rise in early May, its largest hike since 2000. Higher rates reduce the net present value of future cash flows, dragging down asset prices. Higher