Insights

The last week saw big moves in bond and equity markets with different underlying drivers, but one unifying theme: uncertainty. Uncertainty over the path forward for inflation and interest rates, and over who's going to make money from the AI bonanza.

As the US-Iran war heats up again, higher oil prices will put upward pressure on inflation and interest rates, though it is likely to be temporary. Therefore, the question remains open as to what the longer-term inflation outlook will be.

Once again, we are faced with great geopolitical uncertainty and market volatility. In times like these, it might be useful to get back to basics and remind ourselves that long-term wealth creation and preservation need not be complex. The biggest problem is usually not the noisy world out there, but the way we respond to it.