Meet the team
Tim Adams Independent Financial Adviser
Market Commentary
Hello and welcome to our latest Market Commentary.
The idea behind these updates is really simple. There is an awful lot of noise out there at the moment, so I want to cut through the headlines and explain what is actually happening and, more importantly, what it means for you and your money.
The commentary on this page is for general information purposes and does not consitute advice.
The Big Picture - What's Going On
Markets have started September with a few nerves, but the bigger picture remains reasonably resilient.
The S&P 500 is up nearly 13% this year and remains only around 1% below its recent record high. However, volatility has returned as investors weigh up three familiar issues: inflation, interest rates and geopolitics.
The latest US employment figures were considerably stronger than expected, with 162,000 jobs created in August, compared with forecasts of around 56,000. Normally, that sounds like excellent news. The problem is that a stronger economy gives the US Federal Reserve less reason to reduce interest rates — and potentially more reason to increase them.
At the same time, tensions between the US and Iran have intensified again. Brent crude closed Friday at $96.28 a barrel, and events over the weekend have added further uncertainty. Despite this, markets have not fallen apart. On Friday, the S&P 500 fell just 0.38%, while our own FTSE 100 finished at 10,831.
Why Does That Matter?
This is where market headlines can eventually find their way into everyday life.
If oil remains expensive, it does not just mean potentially higher prices at the petrol pump.
Oil and energy affect the cost of transporting food, manufacturing goods, flying abroad, running businesses, and heating our homes. Businesses rarely absorb all those additional costs indefinitely, so some eventually get passed on to us.
In simple terms:
Higher energy costs → higher business costs → potentially higher prices → inflation remains sticky → interest rates stay higher for longer.
UK inflation is currently 2.9%, having risen from 2.6%, while Bank Rate remains at 3.75%.
For somebody coming off a cheap fixed-rate mortgage, that matters because mortgage rates may not fall as quickly as hoped.
For savers, however, higher rates are not entirely bad news. Cash and deposit rates may remain attractive for longer.
And for somebody approaching retirement, higher bond yields can improve the income available from bonds and potentially annuities, although rising yields can cause existing bond values to fall in the short term.
So, the same economic news can affect different clients very differently.
What does this mean for yours pensions and investments?
Probably less than the headlines might suggest.
A properly diversified portfolio should never rely entirely on America, technology, the UK, bonds or any one particular asset doing well.
Different investments should behave differently at different times.
That is the whole point of diversification.
If you are still contributing to a pension or ISA, occasional market falls can actually work in your favour because your regular contribution buys more units at lower prices.
If you are retired and drawing income, short-term volatility is more relevant. This is why having the right withdrawal strategy and sufficient cash reserves matters — so we are not forced to sell investments simply because markets happen to be having a difficult month.
What Are We Watching Next?
The next couple of weeks could be particularly interesting.
10 September — US producer inflation
11 September — US consumer inflation
15–16 September — Federal Reserve interest-rate decision
16 September — UK inflation
17 September — Bank of England interest-rate decision
We are also watching oil prices, company profits, and AI. Enormous sums continue to be invested in Artificial Intelligence, but markets will increasingly want evidence that this spending is producing sustainable profits rather than simply an exciting story.
Martyn's Final Thought
Try not to let every headline become your investment strategy.
What matters more is what is happening in your world.
Has your income changed? Are your expenses rising? Are you approaching retirement? Has your attitude to risk changed? Does your financial plan still show that you have enough money to achieve the things that matter to you?
If the answer is that your plan still works, your investments remain properly diversified and you are still on course, then a difficult week in the markets rarely requires a dramatic response.
There will always be another headline, another crisis, and another difficult day.
Fortunately, there is always another day.
Market figures correct to 4 September 2026, with geopolitical developments updated to 6 September 2026. The value of investments can fall as well as rise and you may receive back less than you invested. Past performance is not a reliable indicator of future performance.