Performance Update – September 2023

15 September 2023

15 years since the Great Recession and how are still feeling the effects of this in some form. India now seems the supply chain solution to China’s flagging economy…

Dear *|FNAME|*

Last Friday marked the 15th anniversary of the last global financial crisis. The 2008 “Great Recession” was the worst economic disaster since the Great Depression of 1929.
For those that were in the finance industry at the time, much like 9/11 we remember where we were in that moment, when Lehman Brothers went bankrupt.

This event triggered panic in financial markets as stock markets around the world plummeted, credit for both businesses and individuals dried up and governments and central banks took a series of unprecedented measures to stabilise the financial system.

15 years on and the effect of central bank intervention since 2009 in the form of quantitative easing can still be felt and has ultimately come through in the inflation figures we are seeing at the moment.

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.

Our recent changes to the portfolios have so far had a positive impact, most notable India, which is currently benefiting from the “anti-China” rhetoric coming from the US and how many companies are beginning to look at alternative supply chains.

Closer to home, markets have now priced in the likelihood of another rate hike this week by the Bank of England, with many expecting this one to be the final rise…for now.

We believe that 5.5% should be the highest rate we get to for 2023, as we see the lagging impact of these hikes over the next 6-18 months. The economy itself contracted in July, which was more than expected and we feel it only sensible that the economy takes stock of these rises to see the long term impact it has on the economy.

Have a great few weeks everyone!

Louis Greening
Investment Specialist
Clear Financial Advice

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