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LCP Investment Summary - September 2022
LCP Investment Summary - September 2022

5 October, 2022 by Administrator

Equities Volatile market conditions...

LCP Investment Summary - August 2022
LCP Investment Summary - August 2022

6 September, 2022 by Administrator

Equities Following a ~10% recovery in...

LCP Investment Summary - July 2022
LCP Investment Summary - July 2022

4 August, 2022 by Administrator

Equities Global equity markets rose 10.3%...

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

5 July, 2022 by Administrator

Equities Global equity markets fell...

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LCP Investment Summary - August 2022

Posted on 6 September, 2022 by Administrator

LCP Investment Summary - August 2022

Equities

Following a ~10% recovery in July, global equity markets fell 2.6% in August (in € terms). The US dollar continued to strengthen against the Euro, providing some insulation from falling equity markets for unhedged Euro investors. Market performance was mixed over the month with initial strong gains following lower than anticipated US inflation data.

Hawkish comments from the US Federal Reserve caused markets to fall sharply in the last week of August, as the Federal Reserve signalled its commitment to raising interest rates in the battle against inflation. Technology and growth stock valuations were impacted most due to their sensitivity to interest rate rises. The energy crisis in Europe intensified as Russia announced at the end of month the suspension of the flow of gas through the Nord Stream pipeline. Fears escalated that Russia will “weaponise” energy supplies to Europe in retaliation to the sanctions implemented on Russia when they invaded Ukraine.

Bonds

Longer-dated Eurozone bond prices fell 10.3% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to 1.7% by month-end. The Euro Broad Sovereign 10+ Year Index fell 9.0%, with its yield rising to 2.6% by the end of August.

Inflation continued to rise. Eurozone inflation hit a new record of 9.1% in August. Central bankers continued to face challenging market conditions in their attempts to combat inflationary pressures alongside increased recession risk. Looking ahead to September, market participants will be watching the ECB with interest as they meet to discuss increasing Eurozone interest rates further.

Sample DC Schemes

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

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