Looking back on last year, it was very pleasing to see that investment returns defied the barrage of political and economic noise throughout the year. In spite of ongoing debates around whether governments are spending too much, if the economy can continue to grow, the impact of military flare-ups across the world, and concerns over various market bubbles, nonetheless major equity indices were up between 12-20% in 2025, with the fourth quarter doing nothing to halt the gains.

Responding to an interest rate cut by the US Federal Reserve (Fed) last week, the Bank of England (BoE) cut interest rates yesterday by 0.25%. Commentary focussed on slow growth and falling inflation, with the main area of concern being the economic growth forecasts. It was not exactly reassuring to see the BoE Monetary Policy Committee (MPC) vote five to four in favour of a sixth rate cut since the summer of 2024, as it forecast that inflation is likely to fall close to its

Tech in Turbulence · Markets saw renewed volatility in November amid AI concerns and shifting Fed rate expectations. · Developed-market equities fell in sterling terms despite a broadly resilient US earnings season. · Equity leadership rotated from US tech toward Europe, while Asian markets and emerging regions weakened. · Global bonds were flat overall, as mixed UK and US data balanced sentiment. · UK autumn 2025 Budget froze income tax thresholds, reversed the two-child ben