By the time we have done our research and written a blog about the current economic situation it is already out of date! It seems that every day there is some new story of doom and gloom. Some news outlets seem to delight in delivering the worst possible version of events.
However, investing for the long term has many benefits which are easy to forget when there is a market shock! Even during the worst periods of history, the global stock markets have recovered and added value for investors.
There are so many factors at play including supply chain issues, Covid disruption, the war in Ukraine, inflationary pressures and interest rate rises. It's difficult for economists to predict what could happen next but we've found some great articles to give some balanced views and potentially give us some reassurance that all things must pass.
Starting with this blog from Global Consultancy firm Deloitte. which sets out the case for more transient inflation, easing over the next 18 months. They think that the issues causing inflation are temporary. An easing of pent up demand after Covid, combined with a slow-down of consumer spending should take effect after an October peak.
You can watch this weekly video blog from Tom Stevenson at Fidelity with a round-up of the main stock markets. Some positive news from the US this week which could be a good sign for us as they are further along the economic cycle than the UK and Europe. The key questions he notes is. can corporates keep profits up as stocks recover?
For a balanced look at the risks to the UK economy, this blog on poundssterlinglive.com cites some underlying strengths such as the employment market, which mean the outlook is not as bad as some might say.
As usual it would be great to predict what will happen next, but the only thing we can do is take a balanced approach to investing and stick to the plans we have made.