May 2024 Investment Summary

Our May 2024 Investment Summary reflects upon a somewhat taxing period of market performance for April and what to expect for the upcoming month of May, as we continue further into Q2. Our Chief Investment Officer Jeff Brummette breaks down what has been going on…


April proved challenging for most of the major equity markets, particularly following the strong performance in the first quarter. This probably shouldn’t have been a surprise, considering the scale of the equity rally over the past six months. Markets rarely ascend in a steady, linear fashion. You can probably tell by our tone we view this as a correction rather than a fundamental shift in trend.



Source: Bloomberg


The declines were driven mainly by the increasing recognition that the US Federal Reserve (Fed) is not going to cuts rates as quickly and by as much as had been anticipated by the markets at the beginning of the year. The resilience of US economic growth, particularly in the labour market, and the potential stalling of inflation improvement around 3%, contributed to this realisation. While this situation doesn’t necessarily spell trouble for markets, robust growth and strong labour markets typically translate to increased spending and healthy revenues for businesses. However, if markets were counting on interest rate cuts, it may necessitate an adjustment of some equity market valuations.

Maybe such an adjustment is taking place in the Magnificent Seven; Nvidia, Meta, Microsoft, Amazon, Tesla, Apple, and Alphabet. 



Source: Bloomberg


Out of the seven, only two posted positive returns for the month: Alphabet and Tesla. Tesla’s performance was primarily a rebound from a 40% decline in the year, whereas Alphabet had genuinely strong earnings and provided positive guidance in terms of the outlook ahead.

Both China and the UK experienced positive equity market performance in April, each for their own specific reasons. China witnessed better economic data for the first quarter, and there were hints of potential “official buying” taking place. Chinese authorities are renowned for encouraging large state-owned financial institutions to purchase securities, with the aim of stabilising or bolstering the market.

UK equity gains were the result of the continued rise in commodity and energy prices (see the chart below). The FTSE 100, which has a significant weighting to energy and mining, was a big beneficiary of this move.



Source: Bloomberg


The mining sector also received a notable boost from BHP’s bid for Anglo American. It will be intriguing to observe how this potential M&A play unfolds and whether additional potential buyers emerge.

There’s a growing realisation that the current copper mining capacity is insufficient to meet the demands of expanding global electric grids. The increasing prevalence of electric vehicles on the roads, coupled with the surge in data centres for Artificial Intelligence training, and governments initiatives encouraging the use of electricity for heating, cooling, and cooking, is significantly boosting electricity demand. Consequently, copper prices have surged this year, with copper producers following suit. The concurrent rise in gold and oil signals strong demand, although there may also be a hint of the markets starting to think that the central banks are done hiking rates despite inflation persisting above their 2% target.

It appears probable that the European Central Bank will cuts rates in June, and we wouldn’t be taken aback if the Bank of England followed suit by lowering rates by September. However, it’s crucial not to interpret these rate cuts as the start of a new easing cycle. Instead, these are just modest adjustments to prevent monetary policy from becoming overly restrictive.

With Eurozone growth finally showing signs of picking up, it is hard to see interest rates going much lower than 3%.





Source: National Statistics Institutes via Bloomberg


European businesses and households are benefitting from the lowest energy prices in two years, providing a significant boost to real income. If confidence continues to improve and they opt to spend, there’s ample capacity to do so.

As we have been suggesting all year, while interest rate cuts would be positive, they are not essential for the equity markets to maintain their upward trajectory. Solid economic growth, along with robust business and consumer spending, can continue to support stocks, but it is important to own the right companies. A diversified portfolio of comprising quality stocks, combined with moderate fixed income exposure, will enable investors to navigate the new world of higher inflation and interest rates. This new environment is not an aberration, rather it signifies a return to long-term averages. 



Hear more from the Oakglen experts

Our investment team continue to provide topical and informative content for you to digest. Hear from Jeff Brummette on Q1 earnings in The Fed, 1st Quarter Earnings, and the Equity Market, whilst our Investment Manager Myles Renouf recently covered upon our investment performance in Q1 2024: Discretionary Investment Management Service Update. You can read more on our News & Insights page.

Sign up below to receive similar content directly into your inbox.



Want to become an Oakglen client?

Get in touch with one of our wealth team via the Contact Us page to hear more about our products and services, and how suitable they are for you and your personal circumstances.

Jeff Brummette
Chief Investment Officer


This document is distributed by Oakglen Wealth Limited and / or Oakglen Wealth (Jersey) Limited (hereafter “Oakglen”) to you for your information and discussion only. Unless otherwise stated nothing in this document constitutes investment, legal, accounting, real estate, conveyancing, surveying or tax advice, or a representation that any investment is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. It is not a solicitation or an offer to buy or sell any security or other financial instrument. Any information including facts, opinions or quotations, may be condensed or summarised and is expressed as of the date of writing. The information may change without notice and Oakglen is under no obligation to ensure that such updates are brought to your attention. The price and value of investments and any income that might accrue could fall or rise or fluctuate. The price of shares and income from them may fall as well as rise and is not guaranteed. You may not get back the amount of your original investment. A change in the economic environment, possible changes in the law and other events may cause future performance to deviate from that expressed or implied in this document. Please note that past performance, simulations and forecasts are not a reliable guide to future returns. If an investment is denominated in a currency other than your base currency, changes in the rate of exchange may have an adverse effect on value, price or income. Investing in Packaged Retail and Insurance-based Investment Products (PRIIPs) carries a high level of risk and may not be suitable for all investors.

Any information provided by a client and used to produce this document will have been checked by Oakglen for plausibility only and the client notified accordingly of any obvious anomalies. This document and any related recommendations or strategies may not be suitable for you; you should ensure that you fully understand the potential risks and rewards and independently determine that it is suitable for you given your objectives, experience, financial resources and any other relevant circumstances. You should consult with such adviser(s) as you consider necessary to assist you in making these determinations. The opportunities and risks associated with each investment product can be found in the relevant underlying securities prospectus and any other supplementary documents. All documents will be made available at any time upon request.

Oakglen does not advise on the tax consequences of investments, and you are advised to contact a tax adviser should you have any questions in this regard. The levels and basis of taxation are dependent on individual circumstances and are subject to change. This document may relate to investments or services of an entity/person outside the United Kingdom, or to other matters which are not regulated by the Financial Conduct Authority, or in respect of which the protections of the Financial Services Compensation Scheme. Further details as to where this may be the case are available on request in respect of this document. Additionally, this document may relate to investments or services of an entity/person outside Jersey, or to other matters which are not regulated by the Jersey Financial Services Commission, or in respect of which the protections of the Jersey Financial Services Commission for retail clients. Further details as to where this may be the case are available on request in respect of this document.

This document has been prepared from sources Oakglen believes to be reliable, but we do not guarantee its accuracy or completeness and do not accept liability for any loss arising from its use. Oakglen reserves the right to remedy any errors that may be present in this document. Oakglen, its affiliates and / or their employees may have a position or holding, or other material interest or effect transactions in any securities mentioned or options thereon, or other investments related thereto and from time to time may add to or dispose of such investments.

This document is intended only for the person to whom it is issued by Oakglen. It may not be reproduced either in whole, or in part, without our written permission. The distribution of this document and the offer and sale of the investment in certain jurisdictions may be forbidden or restricted by law or regulation. This communication does not constitute the solicitation of an offer to purchase or subscribe for any investment or service in any jurisdiction where, or from any person in respect of whom, such a solicitation of an offer is unlawful.

Investments may have no public market or only a restricted secondary market. Where a secondary market exists, it is not possible to predict the price at which investments will trade in the market or whether such market will be liquid or illiquid. As such, for investments not listed or traded on any exchange, pricing information may be more difficult to obtain, and the liquidity of the investments may be adversely affected. A holder may be able to realise value prior to an investment’s maturity date only at a price in an available secondary market. The issuer of the investment may have entered into contracts with third parties to create the indicated returns and/or any applicable capital protection (in part or in full). The investment instrument's retention of value is dependent not only on the development of the value of the underlying asset, but also on the creditworthiness of the Issuer and / or Guarantor (as applicable), which may change over the term of the investment instrument. In the event of default by the issuer and/or Guarantor of the investment, and / or any third party the investment any income derived from such contracts is not guaranteed and you may get back none of, or less than, what was originally invested. Parties other than the Issuer or Guarantor (as appropriate) mentioned in this document (for instance the Lead Manager, Co-structurer, Calculation Agent or Paying Agent) do neither guarantee, repayment of the invested capital nor financial return on the investment product, if nothing is indicated to the contrary. Any capital protection given is usually an inherent part of the product; provided through the use of options, futures or other derivative products. You may have to accept smaller returns on an investment relative to a direct investment in the underlying index, basket, etc. because of the costs involved in providing the capital protection. Such capital protection normally only applies if the investment is held until maturity. The amount of initial capital to be repaid may be geared, which means that a fall in the underlying index or securities may result in a larger reduction in the amount repaid to investors. Alternative investments, derivatives or structured products are complex instruments that typically involve a high degree of risk and are intended for sale only to investors who are capable of understanding and assuming the risks involved. Structured products carry counterparty risk, in that in the event of default by the issuer you may lose some or all of your capital invested even when the product carries capital guarantees. Where this document relates to emerging markets, such investments should be made only by sophisticated investors or experienced professionals, who have independent knowledge of the relevant markets, are able to consider and weigh the various risks presented by such investments and have the financial resources necessary to bear the substantial risk of loss of investment in such investments.

The services described are provided by Oakglen or by its subsidiaries and/or affiliates in accordance with appropriate local legislation and regulation. Certain products and services may not be available in all locations or to all Oakglen clients.

Data Source: Oakglen Wealth (Jersey) Limited and Oakglen Wealth Limited, otherwise specified.

Oakglen is a registered business name of Oakglen Wealth (Jersey) Limited and Oakglen Wealth Limited.

Oakglen Wealth (Jersey) Limited is regulated in Jersey by the Jersey Financial Services Commission for the conduct of Investment Business and is a limited company with company number 121454, incorporated in Jersey on 7 June 2016. Its business address is 4th Floor, 1 IFC, St Helier, Jersey, JE2 3BX.

Oakglen Wealth Limited is authorised and regulated by the Financial Conduct Authority. The registered address of Oakglen Wealth Limited is 30 Golden Square, London, United Kingdom, W1F 9LD and is registered in England and Wales with number 13182724.