Carmignac's Note

The days of cheap financing for the US are drawing to a close, and with them the Pax Americana that had reigned over the globe since 1945

In times of extreme and widespread downturns, recognising that it can be useful to be contrarian is essential.

The US Federal Reserve is starting to see the effects of its aggressive moves to counter inflation, which included swift hikes in the fed funds rate.

September showed no respite from this year’s slump in financial markets.

The return of inflation has changed the bond-market landscape and is creating fertile ground for active investment approaches.

Because an extended period of high inflation is a very real prospect, we have structured our diversified investment portfolios so as to be in phase with the business cycle.

Market hopes were dashed from mid-August onwards after the release of UK inflation data.

How we’ve adapted our investment strategy following an eventful month for markets.

Financial markets are being influenced primarily by macroeconomic factors, and only to a lesser extent by company fundamentals.