Portfolio November 2023

The third quarter of 2023 was characterised by turbulence of varying kinds. Further rises in key interest rates weighed on bond investments and the likelihood of an economic downturn acted as a drag on equity prices, while at the start of October the terror attacks in Israel dragged geopolitics back to centre stage.

The conflict in the Middle East brings the risk of higher oil and energy prices. Such a scenario could fuel inflation – particularly in industrialised nations where this has recently been declining – and impact on economic development. In addition, Europe currently finds itself in a weak phase. One glimmer of hope can be found in the form of tech stocks, which are benefiting from the potential of artificial intelligence (AI) and could therefore act as a prop for the US economy. We are eagerly awaiting further data from the third-quarter corporate reporting season. Company results unveiled so far paint a mixed picture.

What does the turbulent environment mean for investors? You’ll find our assessment here.