Interest Rates Are Going Up - Is the UK Ready?

📈 Download the full Portfolio Performance Slides

View the portfolio breakdown: here

📧 Get in touch: theartofinvesting@ig.com

📱 Behind the scenes: @_theartofinvesting on TikTok

🎧 Listen on: Apple, Spotify, YouTube

This week on The Art of Investing, the team ask whether the investment landscape is beginning to change as bond yields continue to climb around the world.

Chris compares the very different forces driving UK and US bond markets, arguing that while America faces a growing competition for capital to fund the AI investment boom, the UK is confronting a much more uncomfortable inflation and credibility problem.

The team also revisit Jackson Hole, where Kevin Warsh’s more hawkish message pushed markets towards expecting further interest rate rises, and examine the latest chapter in the increasingly public disagreement between Scott Bessent and Stanley Druckenmiller over the direction of US bond yields.

Alongside the macro debate, they answer listener questions on the role of short-dated gilts in a diversified portfolio, whether higher bond yields have changed the case for the Russell 2000, and why becoming emotionally attached to an investment can be one of the most dangerous mistakes an investor makes.

This Week’s Highlights:

🛢️ Oil Puts Markets Under Pressure

Oil prices jump sharply as conflict escalates again in the Middle East, adding to inflation concerns and weighing on industrials, commodities and interest-rate-sensitive assets.