Market Update: January 2024

James Calder, our Chief Investment Officer, starts the new year with a short update on markets.

While 2023 was characterised by inflation and the tools used to fight it, the narrative has now shifted to when central banks will start cutting rates.  However questions remain regarding when we are likely to see this happen.

Our own thoughts are that inflation will stay flat in the very short term, but the dominating trend is downwards. While no-one is ringing the bell for the next bull market, there is a return to cautious optimism, and we have decided to increase risk slightly across portfolios.