Today, like Blackadder, governments find themselves financially embarrassed, laden with debt. Central banks, unlike the Baby-eating Bishop of Bath & Wells, are not armed with a red-hot poker to bring delinquent treasury ministers to heel but they too are finding that cowpats litter their own path to containing inflation. As for blackmailing the bank manager, however tempting, best not to unless a trip to the Tower is your aim.
It has been a busy week for economic data. It was a veritable mixed bag, some of it perplexing and seemingly contradictory.
This contradictory data of an economy flirting with recession, unemployment creeping up but wages still stubbornly high and real wages increasing poses a challenge to the Bank of England’s Monetary Policy Committee which meets next week. As tends to happen in such situations of uncertainty, committee members cannot resist the temptation publicly to fly personal kites ahead of the meeting to steer opinion of what they think ought to happen. The Governor is already on record as saying UK interest rates are at or near their peak; Catherine Mann, a natural policy hawk, said recently that while the headline economy might be flat-lining, the rate of inflation is still far too high despite the Bank consistently raising interest rates since December 2021, from rock bottom to 5.25% today: she advocates that failing to kill inflation now through further rate rises now will only prolong the agony later. Meanwhile, Huw Pill, the Chief Economist, is on record saying that the risk of over-tightening could cause unnecessary long-term economic damage and that to pause now is the correct solution. We will know soon enough (Thursday, 21 September), though it is the subsequent publication of the minutes which reveals the extent of the debate and dissent or consensus in reaching the decision.
The Jupiter Merlin Portfolios are long-term investments; they are certainly not immune from market volatility, but they are expected to be less volatile over time, commensurate with the risk tolerance of each. With liquidity uppermost in our mind, we seek to invest in funds run by experienced managers with a blend of styles but who share our core philosophy of trying to capture good performance in buoyant markets while minimising as far as possible the risk of losses in more challenging conditions.
The value of active minds – independent thinking
A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.
Fund specific risks
Get in touch
This document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. Past performance is no guide to the future. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. The views expressed are those of the authors at the time of writing are not necessarily those of Jupiter as a whole and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. For definitions please see the glossary at jupiteram.com. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Company examples are for illustrative purposes only and not a recommendation to buy or sell. Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ are authorised and regulated by the Financial Conduct Authority. No part of this document may be reproduced in any manner without the prior permission of JUTM or JAM.