Finding opportunity in uncertainty

All information is correct as at 30 September 2022 unless otherwise stated.

In our spring issue of the Investment Times, we reflected on the main reason why we invest – to beat inflation and make a real return. Since then, a mixture of headline-gripping economic figures and interventions have spooked stock markets across the world.

Multi-decade-high inflation across the globe has prompted big action. Even with the new government’s promises to fix energy price caps, prices are still rising. It’s harder to achieve that real return.

As interest rates rise to combat inflation, investors need to contend with the idea of falling investment prices and better returns on their cash. While higher interest rates on savings might feel good, the return on cash after inflation is worse than when rates were below 1%.

Some are predicting interest rates will hit 6%. Others think we’ve gone too far already and see rates rising more slowly than expected as a huge opportunity.

The question isn’t if we should stay invested or not, but where?

Opportunity in uncertainty

Shares and bonds are the building blocks to creating a diversified portfolio. While they’ve broadly had a tough time over the last year, they aren’t all created equal.

This issue of your Investment Times is designed to give you the tools to build and maintain a portfolio with your personal goals in mind.

We share our new asset allocation strategy to break down what to consider when deciding how much to hold and where, while offering some of our latest investment ideas.

Start with the largest stock market of them all and see why every investor should consider the US stock market. Find out if now’s the time to revisit bonds.

Why not explore the world’s leading income market. Or learn how to de-risk your portfolio for retirement.

We hope you enjoy your latest issue.

This isn’t personal advice. If you’re not sure what’s right for you, or want a second check on your plans, ask us for financial advice. All investments fall as well as rise in value, so you could get back less than you invest.

Annual performance across the major sectors 2012 - 2017 (September to September, %)

Scroll across to see the full chart.

• View the performance table in text format

  Scroll across to see the full table.

  2012-13		2013-14		2014-15		2015-16		2016-17
  Japan	32.58%	North America	15.87%	UK Government Bonds	7.96%	Global Emerging Markets	38.45%	Europe (ex UK)	22.09%
  Europe (ex UK)	26.85%	Global	7.90%	Japan	3.94%	Asia Pacific (ex Japan)	37.71%	Global Emerging Markets	17.84%
  UK All Companies	22.55%	Asia Pacific (ex Japan)	6.71%	Global Corporate Bonds	3.64%	Japan	32.61%	Asia Pacific (ex Japan)	15.44%
  North America	20.58%	UK Corporate Bonds	6.56%	Europe (ex UK)	3.58%	North America	31.87%	Global	15.01%
  Global	18.99%	Global Corporate Bonds	6.48%	North America	3.24%	Global	27.21%	North America	14.77%
  Global High Yield Bonds	8.04%	UK All Companies	5.90%	UK Corporate Bonds	2.97%	Europe (ex UK)	18.58%	Japan	13.78%
  Asia Pacific (ex Japan)	7.46%	Global High Yield Bonds	5.57%	UK All Companies	1.86%	Global Government Bonds	17.49%	UK All Companies	13.77%
  UK Corporate Bonds	2.61%	UK Government Bonds	5.45%	Global Government Bonds	1.33%	Global High Yield Bonds	16.41%	Global High Yield Bonds	6.78%
  Global Emerging Markets	0.97%	Europe (ex UK)	4.13%	Global	-0.08%	UK Government Bonds	15.51%	Global Corporate Bonds	1.50%
  Global Corporate Bonds	0.86%	Global Emerging Markets	3.23%	Global High Yield Bonds	-1.15%	Global Corporate Bonds	14.89%	UK Corporate Bonds	0.80%
  Global Government Bonds	-2.76%	Global Government Bonds	2.45%	Asia Pacific (ex Japan)	-7.30%	UK Corporate Bonds	12.94%	Global Government Bonds	-2.48%
  UK Government Bonds	-4.21%	Japan	-0.46%	Global Emerging Markets	-14.20%	UK All Companies	12.07%	UK Government Bonds	-5.73%

Past performance isn’t a guide to the future. Source: Lipper IM from 30/09/12 to 30/09/17, IA sector performance.

Annual performance across the major sectors 2017 - 2022 (September to September, %)

Scroll across to see the full chart.

• View the performance table in text format

  Scroll across to see the full table.

  2017-18		2018-19		2019-20		2020-21		2021-22
  North America	19.51%	UK Government Bonds	13.63%	North America	9.02%	UK All Companies	32.24%	North America	-1.69%
  Japan	12.14%	Global Government Bonds	11.37%	Asia Pacific (ex Japan)	7.59%	North America	26.66%	Global Government Bonds	-7.78%
  Global	11.80%	Global Corporate Bonds	9.56%	Global	7.38%	Global	23.85%	Global	-8.71%
  UK All Companies	5.61%	UK Corporate Bonds	9.04%	UK Corporate Bonds	4.20%	Europe (ex UK)	22.43%	Asia Pacific (ex Japan)	-9.54%
  Asia Pacific (ex Japan)	4.04%	Global Emerging Markets	7.30%	UK Government Bonds	4.07%	Global Emerging Markets	18.79%	Global High Yield Bonds	-10.29%
  Europe (ex UK)	1.81%	Global High Yield Bonds	7.25%	Global Corporate Bonds	4.01%	Japan	17.47%	Global Government Bonds	-13.67%
  Global High Yield Bonds	1.64%	North America	7.22%	Japan	3.84%	Asia Pacific (ex Japan)	15.22%	Global Emerging Markets	-14.16%
  UK Government Bonds	0.63%	Asia Pacific (ex Japan)	6.09%	Europe (ex UK)	3.48%	Global High Yield Bonds	8.05%	Japan	-14.68%
  UK Corporate Bonds	0.13%	Global	5.88%	Global Emerging Markets	2.05%	Global Corporate Bonds	1.35%	UK All Companies	-15.55%
  Global Corporate Bonds	-0.34%	Europe (ex UK)	1.96%	Global Government Bonds	1.81%	UK Corporate Bonds	1.26%	Europe (ex UK)	-16.64%
  Global Government Bonds	-0.36%	UK All Companies	0.12%	Global High Yield Bonds	-0.47%	Global Government Bonds	-5.21%	UK Corporate Bonds	-20.73%
  Global Emerging Markets	-0.76%	Japan	-1.18%	UK All Companies	-12.94%	UK Government Bonds	-7.19%	UK Government Bonds	-24.30%

Past performance isn’t a guide to the future. Source: Lipper IM from 30/09/17 to 30/09/22, IA sector performance.

Editor's choice: our weekly email

Sign up to receive the week’s top investment stories from Hargreaves Lansdown

Please correct the following errors before you continue:

Existing client? Please log in to your account to automatically fill in the details below.

Title:

Please select... Mr Mrs Miss Ms Mx Dr Sir Rev

First name:

Last name:

Email address:

Main phone number: (optional)

Mobile phone number: (optional)

Date of birth: (optional)

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Title:

First name:

Last name:

Address:

Email address:

Where did you hear about us?

Please select... Mobile application HL mention on another website Recommendation from a friend Advert on another website HL mention in the media Advert in the press Search Engine / Research Existing client

Hargreaves Lansdown would like to contact you about the services we offer which may be of interest to you. We explain how we use your personal data in our Privacy Policy.

If you would rather not hear from us, please tick the relevant box(es) below:

Email - no thanks, please don't contact me via email

Post - no thanks, please don't contact me via post

Phone - no thanks, please don't contact me via phone

Register

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Your postcode ends:

This is my postcode

Not your postcode? Enter your full address.

Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. We will not sell or trade your personal data.