Chartered Financial Planner and Operations Director, Aled Phillips, shares his views on the financial markets.

This week has seen continued price action in markets, largely around inflation and the risk of recession increasing. There are a few important updates this week with higher than expected US inflation data being announced and throughout the week 9 members of the Federal Reserve will be speaking, which the markets will be watching closely.  

It is important to note that a lot of bad news of high inflation and interest rates has already been priced in to the markets, and on a positive note earnings reported by companies in the first quarter of the year have so far been better than expected, with unemployment rates remaining low which should provide some buffer for consumer confidence.

Consumers are already adjusting to the higher cost of living and this should help to start to bring down inflationary pressures, allowing central banks not to raise interest rates so aggressively towards the end of the year and in to 2023.

We expect that market volatility will continue but as ever these short term market movements are not relevant in a long term financial plan, and it is important to think in decades rather than days as an investor.

If you do have any concerns over current market movements please don’t hesitate to contact your adviser.

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The contents of this article do not constitute financial advice in any way; if you have any concerns about your finances you should talk to your financial adviser. The value of your investments can go down as well as up.