Investment portfolios finished the quarter slightly down as markets contracted through September after starting strongly in July.

The recent market pull-back is attributable to a range of rising concerns including inflation surges, global supply and manufacturing problems, energy shortages in China and Europe and Covid-19 Delta outbreaks that are putting some economies into rolling lockdowns.

Though vastly improved over the last 12 months, global economic growth is still in a recovery phase from the deep recession in 2020. Global demand remains very strong. Not only are Governments continuing to spend (and borrowing to do it) but households and businesses are also catching up from lockdown inactivity and have record financial capacity to spend. This should underpin global growth and company earnings for several years.

View PDF

Posted: Mon 18 Oct 2021