Weekly Market View from Realm Investment Management. Week ending 19th November 2021.
Annual inflation in the UK reached 4.2%, the highest level in nearly a decade. That data puts more pressure on the Bank of England to raise interest rates next month. BoE Governor Andrew Bailey said he was “very uneasy about the inflation situation.”
In Europe, Christine Legarde, President of the ECB, reiterated that inflation was not a permanent feature suggesting that the ECB would not “rush into premature tightening” of its monetary policy.
In the US, investors were weighing inflation worries against a strong third quarter earnings season with the positives winning out as indices closed higher for the week with Growth stocks once again out-performing Value stocks. The price of oil set back and energy stocks under-performed.
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.
This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’