Kames Capital CIO: Dear Worried Investor

Equity markets everywhere look 'reasonably placed'

In this second instalment, Stephen Jones, CIO of Kames Capital, pens an updated letter to investors concerned about macroeconomic and geopolitical headwinds.

Dear Worried, Good to hear from you again. I hope all is well and that your finances are withstanding these roller-coaster equity markets. Stealing a football line, it has been a winter of two halves. You are quite correct to suggest that, if the US Federal Reserve is worried, then shouldn't the rest of us also be concerned? There is no doubt that the change to the future path of US money market rates since last November, which has seen end-2019 rates fall from 3.3% to 2.5%, has been dramatic. For this to have happened when wages in the US are growing, in real terms, at almost t...