So how does gold stack up against conventional listed investments? Should investors leave stock markets behind and go ‘all in’ on bars and coins? Read on to learn more about the investment characteristics of the yellow metal.

Elsewhere, there were bumper paydays for both pensions and wages. The Chancellor confirmed that the state pension will rise by 8.5% next year to match earnings, staying true to the stipulations of the ‘triple lock’. Meanwhile the National Living Wage will rise by a mammoth 9.8% – and will also extend to 21- and 22-year-olds for the first time.

And what of the broader prospects for the economy? Here the news was a distinctly mixed bag. Projections for the government’s deficit and debt load were each improved, which was good to see. However, although we have so far avoided the recession predicted by the Bank of England and other forecasters, the OBR actually downgraded its economic growth forecasts for next year and the year after – from levels which were pretty meagre to start with.

Remember too that those forecasts take into account all the measures the Chancellor announced today. It therefore seems unlikely that the extended relief on business rates, expanded Enterprise Zones and ‘full expensing’ business investment tax cut will prove all that effective in juicing the economy.

Still, investors should keep in mind that it is often not the case that economies and stock markets move in lockstep. The UK market continues to play host to a number of high-quality companies trading at what appear to be attractive valuations, with much negativity now behind us and supportive interest rate cuts likely to be on the way at some point next year.

So there we have it. If all the Autumn Statement excitement and changes of direction have been just too much for you, then get yourself down to the pub for a fortifying drink. No increase in alcohol duties until August (!)

Key measures announced for England (national variations for Scotland, Wales and Northern Ireland may apply)

Personal taxation 

• Main rate of employee National Insurance to be cut from 12% to 10% from 6 January
• Class 2 National Insurance – paid by self-employed people earning more than £12,570 – to be abolished entirely from April
• Class 4 National Insurance – paid by self-employed people earning between £12,570 and £50,270 – to be cut from 9% to 8% from April

• ‘Full expensing’, allowing companies to deduct business investment from profits for taxation purposes, to be made permanent
• 75% business rates discount for retail, hospitality and leisure firms extended for another year
• Alcohol duties frozen until 1 August

Wages, pensions and benefits

• The National Living Wage will rise from £10.42 to £11.44 an hour from next April, an increase of 9.8%
• The state pension will rise by 8.5% from April, matching September’s rate of average earnings growth
• Means-tested and disability benefits, will each rise by 6.7%, matching September’s rate of inflation
• Reforms are to be instituted to the Work Capability Assessment for those looking to claim sickness-related out-of-work benefits, reflecting the increased availability of working from home since the pandemic

Well, there we have it folks: yet another Prime Minister bites the dust.

Liz Truss is headed for the exit door, after less than two months in office. By quite some distance, she will be the country’s shortest-serving Prime Minister, and the first since World War II never to lead her party in a general election.

Today’s developments represent a personal tragedy for Ms Truss and many will understandably feel sympathy for her on a human level. However, looking back at our own comments from the time Boris Johnson announced that he was going – a full three months ago – it is difficult to say that the trials Ms Truss and her government have faced were not foreseeable:

A clear theme has emerged among many of the contenders to replace Mr Johnson: promise tax cuts. Lots of them! And quickly! Yet, so far, less thought appears to have been given to the practicality or wisdom of this platform than to its popularity.

The simple fact – the obvious fact, even – is that putting more money in people’s pockets and in businesses’ bank accounts will add to total demand in the economy. Boosting demand, while supply chains remain strained by Ukraine and the aftershocks of the pandemic, will increase inflation. This is Economics 101…

… The capacity for a tax giveaway to fuel inflation further, necessitating even more interest rate hikes than are already expected, is clear.

The misjudgement of Ms Truss and her (first) Chancellor Kwasi Kwarteng on this crucial matter is why the country is now facing its third Prime Minister in less than two months.

In the short period since Ms Truss announced her resignation, there has been no sign of panic in the markets – indeed, quite the opposite. At the time of writing, Sterling has in fact strengthened slightly against the US dollar, while the FTSE is up on the day. Meanwhile government borrowing costs, the real barometer of crisis the past few weeks, are down. It is likely that, at this point, markets view the uncertainty of a new leader as being preferable to the instability which Ms Truss had come to represent.

Although at the time of writing the precise mechanics of this latest leadership election remain unknown, the new Prime Minister will be in place by Friday 28 October.

Whoever emerges as the victor, it is practically a certainty that they will continue with the tight restraint on spending and taxation espoused by Jeremy Hunt, the Chancellor of the Exchequer, over the past few days. We would view this as positive for investors in UK assets, given the demonstrated drawbacks of the alternative approach.

Looking slightly further out, given the unprecedented situation of a single parliamentary term taking in three Prime Ministers, opposition parties are understandably calling for a general election to be held immediately. There is no constitutional requirement for such to take place until January 2025 – though the political pressure for one may prove difficult to resist.

Unless perhaps the new Prime Minister is one… Boris Johnson. A flight of fancy? Maybe. But it seems fair to say that stranger things have happened. And quite recently too…

Britain’s financial markets have witnessed considerable volatility since Chancellor Kwasi Kwarteng presented his ‘mini Budget’ last month. The pound dropped to all-time lows versus the US dollar and government borrowing costs rose sharply, with investors and traders questioning whether Dr Kwarteng’s package of tax cuts was sustainable or responsible.

Although the damage done to the mortgage market largely remains, a number of actions by policymakers appear to have steadied the ship.

The Bank of England stepped in to buy government bonds to restore the stability of that market. Further, the government has now promised that the Chancellor will outline a plan to keep debt under control “shortly” – as opposed to the original date of 23 November – and that this will be published along with economic forecasts from the independent Office for Budget Responsibility.

Truss and Kwarteng have also rowed back on their commitment to abolish the 45p rate of income tax for high earners, a policy arguably disliked by the markets as it was so unpopular with voters.

These moves appear to have regained some measure of market confidence, for now at least, with Sterling touching its highest levels in around two weeks at the time of writing. What is certain is that the government’s next moves will continue to be watched closely by market participants. What is not is whether the Truss administration ever recovers its reputation with voters.

Outside of the UK, financial markets remain under pressure from high inflation, rising interest rates, geopolitical tensions and fears over energy supplies. These are legitimate concerns and they may well continue to cause volatility, as they have done throughout 2022 so far.

However, we are always mindful that the historical record shows that equity markets overall tend to rise over time. While there will inevitably be some bumps along the way, our view is that staying the course and staying invested usually provides the best outcomes in the end. Over the course of more than fifteen decades, global markets have seen World Wars, pandemics, political chaos, financial crises and more – and most have trended upward through it all.