We launched Edison in 2007 and soon encountered a period of volatile markets and high interest rates. Investors faced tough questions about whether to stay invested or cash out. In many ways, the last two years have felt just like those first two years in business. In this insight, we look at the data to explore the answers to those questions, and consider what might happen next.

Comprising around 25 per cent of world GDP, the US has a significant influence on the business and financial cycles of other economies - in other words, when America sneezes, the world catches a cold. With ever increasing concerns that the US would fall into a recession, we assess those claims and offer ways investors might navigate periods of economic uncertainty.

For fifteen years UK interest rates have been set at historic lows. As a result, cash deposits have earned very little interest, while markets have generally advanced. But higher inflation has ushered in a new regime of rapidly rising interest rates, making cash returns more appealing. We consider whether now is a good time to be holding more money in savings.

High inflation and rising interest rates are causing a global set of worries for households, businesses, and central banks. Add to the mix crumbling public services, geopolitical conflicts, and an economic slowdown on the horizon, it can be tempting to think that things are bad and only getting worse. This insight piece challenges that view, asking: are there reasons to be cheerful?

2022 has been the worst year for government bonds in decades. September alone posted declines of 8% in the broad UK gilt market. Equities have suffered too, as central banks attempt to supress inflation at any cost. The result has been a simultaneous drop in stock, bonds, and most other asset classes, sending correlations positive. Our insight piece this quarter dives into why correlations – or simply, the relationship between assets – matter.