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LCP Investment Summary - June 2022
LCP Investment Summary - June 2022

5 July, 2022 by Administrator

Equities Global equity markets fell...

LCP Investment Summary - May 2022
LCP Investment Summary - May 2022

2 June, 2022 by Administrator

Equities Global equity markets fell -1.2%...

LCP Investment Summary - April 2022
LCP Investment Summary - April 2022

5 May, 2022 by Administrator

Equities Global equity markets fell 3.2%...

LCP Investment Summary - March 2022
LCP Investment Summary - March 2022

5 April, 2022 by Administrator

Equities Global equity markets rose 3.7%...

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LCP Investment Summary - January 2022

Posted on 2 February, 2022 by Administrator

LCP Investment Summary - January 2022

Equities

Global equity markets fell 3.7% in January (in € terms). This fall was somewhat cushioned for the Euro investor as the U.S. Dollar strengthened against the Euro. Equity markets suffered sharp falls throughout January. Markets experienced the worst starts to the year since the global financial crisis.

A large contributor to the volatility was concerns over rising interest rates and speculation over tighter monetary policy being implemented. The anticipated rise in interest rates resulted in a sell-off in technology stocks. Investors feared future earnings would be adversely affected by rising interest rates. The U.S. Federal Reserve have signalled that interest rate rises are due to commence from March this year, however the number of rises expected throughout 2022 is yet to be confirmed.

Geopolitical tensions over Russia potentially invading Ukraine have also impacted markets, as countries start to plan economic and financial sanctions in the event the invasion happens.

Bonds

Longer-dated Eurozone bond prices fell 2.1% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to 0.19% by month-end. The Euro Broad Sovereign 10+ Year Index fell 1.9% with its yield rising from 0.80% at the end of December to 0.92% by month-end. Longer dated AAA Eurozone bond yields rose steadily over the month.

The German 10- year Bund yield, a European benchmark for borrowing costs, returned a positive yield for the first time since 2019 during the month. The ECB remains insistent that there will be no interest rate rises during 2022, however investors believe that inflationary pressures may force the ECB to raise rates sooner than they anticipate.

Sample DC Schemes

Our three sample DC Strategies all fell as most asset classes were down for the month.

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