Performance Update – May 2024

15 May 2024

We believe the Eurozone should cut rates next month, but as for the rest of us who knows!?

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Dear *|FNAME|*

Rate Cuts? 

US = not yet
Eurozone = next month
UK = who knows!

This is the general consensus. The Federal Reserve is grappling with a strong economy as well as stickier inflation, which gives a stronger argument to keep rates steady for now, but the easing inflation story in the Eurozone leaves the door wide open for rate cuts in June.

The UK on the other hand is still feeling the pressure of wage growth. Wages in the UK have grown faster than expected, putting at risk the prospect of a rate cut next month. However, these figures (announced earlier this week) do include bonuses, which is a one off, so we should see some moderation in growth over the next few months. Unemployment does seem to be on the rise, so it really is an unknown as to whether the rate cut will come in June. We shall see…

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.


We finally have the response needed to help stimulate a flagging economy. The Chinese government is at last trying to spur lending and investment with the purchase of government bonds. This move has been anticipated by investors since March and confidence is back when it comes to the second largest economy in the world:

As you know it has been a big position in the portfolios for over 2 years, and although we haven’t recouped all of the losses since we invested, the past few months have certainly helped!

We believe a strong US economy and a resurgent China supports our view that we should remain confident, despite a lack of rate cuts.

Any questions or views, please get in touch in the usual way and have a great week!

Warm Regards

Louis Greening
Investment Specialist

Our mailing address is:
[email protected]

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