Excitement around artificial intelligence (AI), coupled with rapid earnings growth, temporarily propelled chipmaker Nvidia to the status of the world’s most valuable listed company before Microsoft regained the top spot.¹ Geopolitics became more volatile as Iran and Israel briefly exchanged fire, while French politics was thrown into disarray by a surprise snap election. Conversely, an early election calmed the political scene in the UK as markets anticipated a large Labour majority.

Economic data sometimes played second fiddle to politics, but it became clear that economies and corporate earnings were holding up, which boosted equity markets. Expectations for interest rate cuts were dialled back, which generally caused bond yields to rise and their prices to fall. Confirmation, however, that inflation was back on a downward trend put rate cuts back on the agenda later in the period.

Voicing your opinion

While voters were venting their opinion, our central feature this issue lets client views take centre stage. In “What do your peers think?” we incorporate results from our Customer Panel Survey to reflect your opinions on geopolitics, AI and central bank policy. It is worth comparing some of the questions on AI with the fascinating discussion on pages 14-15 between my colleagues Alison Porter and Sarah de Lagarde, who look at the risks and opportunities presented by this exciting technology. On pages 12-13, John Pattullo looks at how inflation in the UK has fallen rapidly back to target, providing scope for the Bank of England to join other central banks on the rate-cutting path.

Elsewhere, we commence with our regular review of the markets from a multi-asset perspective, explore vehicle electrification as an investment theme and consider what the UK election result might mean for UK equities.

I do hope you find this issue of the magazine interesting. As ever, it remains our privilege to manage your investments and we thank you for placing your trust in us.
 
Footnote
¹ Source: LSEG Datastream, market capitalisation in US dollars, 18 June and 30 June 2024. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.