Last year, central banks around the world were supposed to be gradually tightening interest rates. After a decade at historic lows, investors were expecting a “normalisation” of monetary policy, led by the US Federal Reserve.
That did not happen. As James Brumwell, manager of our regular income investment trust-focused portfolio, notes: “A year ago we were looking towards higher interest rates and Brexit being sorted. But that’s not happened. The US/China trade war escalated and now there’s a race to the bottom on interest rates.”