Volatility rising - what investors need to know

Tighter monetary policy is expected

clock • 3 min read
Matthew Benkendorf of Vontobel Quality Growth

Matthew Benkendorf of Vontobel Quality Growth

While inflation remains top of mind for investors worldwide, confidence in the vaccination drive and global recovery, combined with the expectation of relaxed monetary policy, have helped offset inflation concerns.

In the US, economic recovery has strengthened, and a record number of companies have issued positive guidance for the second quarter. The market had slipped back when inflation jumped and the Federal Reserve brought forward interest rate hike planning, but stabilised as Chair Jerome Powell pledged to take a measured approach to tightening. Because interest rates remain low, equity markets keep pushing higher. Despite inflation fears and the prospect for tighter incremental monetary policy, the markets are still settling back on an expectation of an environment that is going to involve...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Markets

The Big Picture: What were the biggest stories from July?

The Big Picture: What were the biggest stories from July?

Recapping the top stories

James Baxter-Derrington
clock 04 August 2022 • 1 min read
Market Movers Blog: Fed poised for another historic rate hike later this week

Market Movers Blog: Pelosi's Taiwan visit weighs on markets

Latest news and analysis

Investment Week
clock 03 August 2022 • 1 min read
Round up of Q3 and H2 outlooks

Outlook roundup: What is worrying managers in H2

Growing concerns around stagflation

clock 01 August 2022 • 6 min read