Investor Update - January 2024

There is good reason for fixed income investors to be positive as we move into 2024, although there is also reason to remain cautious. The welcome news is that inflation globally has finally started to fall after remaining stubbornly high for most of 2023. The rate-hiking cycle looks to have done its job, with interest rates beginning to level off. Core inflation, however, remains sticky, and central banks will be reluctant to entertain any dovish actions that would loosen financial conditions.                                                                                                                                                                                                                 
Felipe Villarroel, Partner, Portfolio Management, provided an update on the fixed income markets, touching on what has been going on in the UK markets and discusses why he thinks uncertainty in the markets has been running at elevated levels. This includes aspects such as household savings ratios and core inflation.