THIS WEEK OF OCTOBER 22 I HAVE UPDATED MY INCOME IDEAS

During the one-month period to 30th September 2022, major equity markets, as measured by the aggregate FTSE All – World Index, fell sharply 9.6%, taking  the year-to-date loss to 26%, in $ terms. All major equity declined with the UK, Europe and Japan marginally outperforming while China and Emerging Markets fell over 12% during the month. The VIX index rose sharply, finishing the period at a level of 31.62. Key equity market drivers were continued concerns over global economic growth, inflation, food crises, rising interest rates and political uncertainty.

Government Fixed Interest stocks also fell over the month largely on inflationary, supply and specific UK related issues. The UK 10-year gilt ended the month on a yield of 4.13% (2.8% one month ago) with corresponding yields of 3.73%, 2.11% and 0.25% in USA, Germany, and Japan respectively. Speculative and lower quality bonds also mostly fell in price terms. Currency moves featured a weaker pound and stronger US dollar. Commodities mostly fell in price terms on revised economic growth forecasts.  

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