Every fund manager update I’ve read in the past couple of weeks has asked, or tried to predict, whether or not we’re heading for a recession, and what that’s likely to mean for your investments. Apparently, yield curves and other technical stuff which historically and with the great gift of hindsight have been precursors of a ‘downturn’ show that it’s coming. Apart from the fact that, both here and elsewhere, especially in the US, there are labour shortages, which make mass layoffs unlikely. In other words, nobody has much of a clue. As and when and if it does happen it’s quite likely to be good news for your investments, as those who make the big buying and selling decisions are always looking forward to what might happen next. And recessions, one way or another, are eventually followed by recoveries, as sure as peace follows war. Hopefully. Glass-half-full.
“‘Nightmare’ inflation eases slightly to 10.5%”
As many have already commented, Rishi’s promise to ‘halve inflation by the end of the year’ is the economic equivalent of promising warmer weather in summer.