| Dear *|FNAME|*
UK inflation fell to its slowest since October 2021 today at 4.6% beating estimations. This follows US data out yesterday confirming year on year inflation is now 3.2%.
These figures along with a pause across rates from central banks a couple of weeks ago has given investors some much needed confidence!
As you know, this situation has been much anticipated and although we may not see a smooth path to the golden figure of 2% for inflation, central banks now have the time to monitor their respective economies. Markets are now pricing in rate cuts as early as May of next year, both in the US and UK. Historically, cuts have been positive for equities by and large.
Our outlook is one of quiet optimism from here on out. We have clear signals that the US economy is “cooling” and given stock market valuations (excluding US Tech!) across developed markets looking cheap, I do believe rates have stabilised and markets can finally get to grips with fundamentals. |
