Macro Minutes: UK Market Volatility

In our latest Macro Minutes video, Fisher Investments’ Capital Markets Research Analyst Davis Hein offers a global perspective on the recent market volatility in the UK, taking a step back to look at how we got here and differentiate fear from fact as we look forward.

Key Points

  • The UK faced significant headwinds as the year progressed and grappled with slowing economic growth and hotter inflation than developed nation peers, leading to increased market volatility and investor fear.
  • UK yields rose significantly following the announcement of a new budget, while yield curves in the US and Europe reacted on a smaller scale indicating a lack of systemic disruption.
  • Funding costs for the UK remain relatively low, significantly below the 40-year average, allowing the government to continue borrowing relatively cheaply and likely be able to pay its debts for the foreseeable future.

*The foregoing information constitutes the views of Fisher Investments based on information believed to be reliable. There can be no assurances that Fisher Investments will continue to hold these views. These views may change at any time based on new information, analysis, or reconsideration.
About Fisher Investments

Founded in 1979, Fisher Investments is an independent, fee-only investment adviser with $197 billion under management.* Fisher Investments maintains four principal business units, Fisher Investments Institutional Group, Fisher Investments Private Client Group, Fisher Investments 401(k) Solutions Group and Fisher Investments Private Client Group International, which serve a global client base of diverse investors. The clients of Fisher Investments and its affiliates include over 100,000 clients. Founder and Executive Chairman Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 through 2016, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 3/31/2022)