Why investors need to hold their nerve

The Chancellor’s mini-budget has unleashed another round of volatility on the markets, with UK bond and currency markets in the eye of the storm. However, after a U-turn on the more controversial elements of the fiscal package and intervention from the Bank of England, a fragile stability has returned. Longer-term problems remain. Inflationary pressures continue, pushing interest rates higher. The squeeze on living costs is intensifying, with mortgage rates and energy bills rising. It is an unsettling moment for investors, with many wondering how they should respond. Volatility is part and parcel of investing. The stock market needs to be approached with a long-term view and many of these problems will resolve over time. There are signs that inflationary pressures are starting to ebb, for example. As Cherry Reynard and Ben Seager-Scott explore in this podcast, all markets offer opportunities. It’s just a question of looking in the right places.