In this month’s update, we explore the strong equity performance seen in July and the risks that could challenge its momentum.
Key Points:
- Political dynamics continue to shape markets, with the US Federal Reserve becoming increasingly politicised. Meanwhile, Donald Trump unveiled his latest fiscal initiative—the One Big Beautiful Bill Act (OBBBA).
- A combination of robust monetary and fiscal support, along with easing tariff tensions, helped fuel economic growth and lift equity markets.
- Gains were largely concentrated in the US, where valuations remain elevated. This leaves markets vulnerable if the Fed is slow to adjust interest rates in response to changing conditions.
The value of securities and the income from them can fall as well as rise. Past performance should not be seen as an indicator of future returns. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
