Performance Update – February 2024

15 February 2024

February has seen a recovery from the lows of early January. Technology continues to power on despite a likely delay in rate cuts across the developed world…



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Dear *|FNAME|*

Over the past few weeks, markets have seen a relatively strong recovery from the beginning of the year, lead by the US. No surprises there! The latest US employment report reaffirmed the resilience of the labour market, with payrolls increasing by 335,000 in January, week ahead of expectations. The US economy is still in very good shape. Falling headline inflation along with a strong labour market has fed the narrative of “higher for just a bit longer” in terms of rates. The technology disruptors continue to lead the recovery, as AI continues to affect spending of all major industries, therefore benefitting the tech giants such as Nvidia and Alphabet.

China has seen a period of relative calm in recent times, and the Lunar New Year, falling when it did, provided a timely respite for investors. The UK officially fell into recession in the latter half of last year, with an overall economic growth of merely 0.1% for 2023. This situation presents a challenging backdrop for the Conservatives facing an election, necessitating the introduction of tax reductions to counter Labour’s increasing momentum. Nonetheless, such efforts are unlikely to reverse the prevailing trend.

This data is net of fund charges but does not include potential platform costs or advisor charges which are likely to alter the overall returns set out above.

Portfolio Performance 

It has been a pleasing start to the year, relative to the average. We have continued with the strong outperformance from last year and the past 6 months have been encouraging.

Our perspectives have remained unchanged since the start of the year, even with recent persistently high inflation rates and a likely postponement of interest rate reductions. However, reductions are anticipated. I believe that in the lead-up to the US election, there will be pressure from the Democrats to boost economic growth and reduce borrowing costs for some individuals. Trump has expressed his desire to replace Powell as the Federal Reserve Chair, accusing him of being “political” and suggesting that he would lower interest rates to “assist the Democrats” this year. Speaking to US media, Trump remarked, “it seems to me he’s attempting to reduce interest rates, perhaps to aid in getting people elected”—a strategy Trump himself, of course, would never consider!

Any questions or views, please get in touch in the usual way!

Warm Regards

Louis Greening
Investment Specialist

Our mailing address is:
[email protected]

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