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Welcome to our Q2 2023 investment update from FPC’s Mike Lea, Investment Director, and Senior Adviser, FPC LLP.

Key points include:

  • US shares continue to climb given growing interest in Artificial Intelligence.
  • The Bank of England talks and acts more aggressively in trying to reduce inflation.
  • Government gilts sustain a further fall in value, but offer attractions for new money.

Summary: A surprisingly positive quarter for global stock markets, despite continued economic weakness. US and Japanese markets in local currency have performed well, but UK investors have not received much of the benefit after accounting for the strong rise in the value of sterling relative to their currencies.

Central banks continue to talk tough over the future path of interest rates, which may be enough to deter consumer demand and business investment to the extent that only modest further action is required.

Fixed interest bonds may well have hit the high in terms of yields, as inflation is finally starting to fall, even in the UK, which has structural issues compared to other economies.

For some investors with excess cash reserves government gilts are offering an interesting and tax efficient alternative to fixed term deposits. This may be suitable if held through to maturity given that the values can fluctuate in the interim period like any other asset class.

Please view the video below and/or click on this link to access the report.

Please note, this investment commentary review contains information and opinion, on current economic and political positions, and does not constitute advice. The information is provided in good faith and is believed to be accurate, but as some data is provided by third parties this cannot be guaranteed. Past returns should not be seen as predictors of future returns.