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.
August lived up to its reputation as a quiet month for global markets. Rich countries have steadily reduced restrictions, enabling economic activity to surge back. The UK and US now seem to be just past the peak rate of growth, though the expansion remains strong. For investors, bad news mostly came from emerging markets; both from China, where the
High-quality stocks performed well in July, bolstered by strong quarterly earnings numbers. Meanwhile, Chinese stocks dropped sharply after Beijing moved to ban education companies from making a profit. Bond yields continued to move down in the month, with the key 10-year Treasury rate easing from 1.4% to 1.2%. An optimist would say this was thanks to receding fears of