In Edison Group's #EdisonInsight October Edition we open with a strategy piece by Alastair George, who believes that the volume is being turned up to 11 in respect of the challenges facing investors this year. Inflation remains well above target in developed markets. Year to date, 2022 has seen some of the sharpest increases in short- and long-term interest rates for decades. Most recently, the UK has amply demonstrated the real-world limits on expansionary fiscal policy and the risk premium associated with political instability. The order and timing of economic events – first GDP growth, then interest rate increases, followed by inflation and unemployment are in our view key to positioning portfolios correctly with the market ‘noise’ level set so high.
Readers wishing for more detail should visit Edison's website, where reports are freely available for download (www.edisongroup.com).