The Month in a Minute
May was mostly positive: stocks rose as US-Iran tensions eased, oil prices fell, and AI spending picked up. Wealthify’s Plans held up well, with Ethical outperforming Original.
Continuing gains for global equities
The rally we saw in April rolled into May, led by tech-heavy markets in the US, Asia, and emerging economies.
A mid-month wobble linked to the US-Iran conflict ultimately faded after a 60‑day extension to the ceasefire and moves to reopen the Strait of Hormuz (though tensions remain, as ever, fragile).
AI continued to prop up markets, with demand for chips and equipment boosting Korea and Taiwan, and Nvidia continuing to climb.
Other big tech firms drew more caution after announcing large capital expenditure plans, leaving investors more selective about future winners. UK and European markets made smaller gains, partly because they’re less tech-focused.
Central banks stayed cautious. In the US, the Federal Reserve signalled rates may stay higher for longer unless inflation eases, with investors watching June for the first decision under the new Chair of the Federal Reserve, Kevin Warsh.
For Wealthify customers, May was a solid month: Plans performed well against global shares, and Ethical outpaced Original.
Going forward, we're keeping an eye on the geopolitical uncertainty surrounding the US-Iran conflict, as well as potential instability in the AI sector. If needed, we're in a position to reduce risk and introduce new investment funds, diversifying and strengthening Wealthify Plans for all possible scenarios.
With investing, your capital is at risk. Please remember the value of your investments can go down as well as up, and you could get back less than invested.
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