September Market Commentary

Commentary by Levendi Investment Management – A Thornbridge Appointed Representative

Investors worldwide have been watching the dramatic moves in the UK government bond markets and their spill over on international markets with both fascination and dread. The ‘mini’ budget presented by the government included the biggest tax cuts in recent history, and funded by a tremendous amount of borrowing under the vague theory it could be paid for by economic growth. The markets certainly disagreed with the theory however as this fiscal event set off a truly historic chain of chaos that led to both the chancellor and the Prime Minister’s downfall, and the BoE bailing out pension funds. The policy mistake that sent the UK markets down 5.36% for the month (5.66% for European markets) is seen to have lingering effects as despite U-turns, Sterling weakness and volatility are still persistent due to a loss in investor confidence.

Author: Alex Hackett, Senior Analyst

Alex is a member of the investment funds team. She is involved in the portfolio construction process and assists with regulatory reporting, trade surveillance and monitoring.