Investment Insights Q4 2023

As the inflationary shocks caused by the pandemic and war in Ukraine finally begin to unwind, we take a look at how the world has changed profoundly, and the opportunities available to us as investors along with it.

9 October 2023

While the markets have been overshadowed by growing perceptions that interest rates will be staying high for longer than previously hoped, this could also be opening up new vistas for investors. We explore not just the downside of higher rates in our lead article, but how this could also lead to better long term risk-adjusted returns in some cases.   

Our outlook for the months ahead remains cautious, and we explain in this edition why we still think recessions - though none has arrived yet since we began forecasting them a year ago - are likely in the world's advanced economies.   

In an uncertain world, safe investments are coveted. The idea that bricks and mortar make for a great investment is even ingrained in the culture of the English-speaking world via the phrase 'safe as houses'. We explore in this edition whether reality really matches the popular perception.   

As we have done in previous Insights, we also take a look at some of the trade-offs involved in the transition from fossil fuels to clean energy - this time we discuss the impact on biodiversity.

Liz Savage and Ed Smith   
Co-chief investment officers

Download our Investment Insights Q4 2023