Investment Market Update - September 29, 2022
Investment Market Update-September 29, 2022
We continue to monitor what is happening in the US and world markets. Much of what happens in the markets is correlated with global markets and the past week has been no exception. Yesterday, September 28, 2022, had all the indices ending on an up note but only after a brutal 6 days of losses. The markets dropped last week on the hawkish tone taken by Jerome Powell, the Fed chairman, but also dropped due to the British pound declining on news that the British government would be enacting tax cuts. The International Monetary Fund had harsh words for Britain and markets were strongly affected by the tax cut news. Yesterday, the Bank of England indicated it would begin buying U.K. government bonds in a bid to stabilize their markets. Yields on our government bonds, which rise when bond prices fall, have been climbing all year as central banks around the world work to fight inflation.
We feel that the markets are due for a bounce and it’s important to not abandon your long-term portfolio strategy if your situation hasn’t changed. We have been lightening up on risk in accounts and holding more cash and safer investments through this market volatility. If you would like to discuss your portfolio and whether anything should be changed, please feel free to contact us.
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