The ONS estimates that inflation is now higher than at any time since around 1982.
The increase in inflation has led to the bank increasing interest rates and thereby boosting the profits of the big firms that dominate the FTSE.
However, markets get nervous when there is prolonged uncertainty in the market. This is clear from the volatility we have experienced since the start of the year. People begin to sell their shares for fear of greater losses.
Having to navigate these volatile waters means having to balance making too many large, directional moves in the portfolio while also bringing in those sectors that see sustainable growth.
Whilst some are becoming more cautious, others are sticking to the old ‘keep calm and carry on’ approach.