October was the month investors in the tech sector remembered share prices can go down as well as up, according to Ben Yearsley, director at Fairview Investing.

Yearsley said that while technology offers extraordinary opportunities, investors still must contend with inflation, debt, and higher interest rates.

“Governments can promise prosperity and tech executives can spend billions chasing AI,” he added. “Somebody has to pay for it all. Increasingly, the bond market wants to know who.”

Yearsley noted the world economy appeared determined to ‘ignore the warning lights flashing on the dashboard’ for much of the month, as inflation remained stubborn and the Middle East crisis rumbled on.

“In Europe, Britain unveiled another Budget, France had another political crisis and Christine Lagarde decided she’d had enough of running the European Central Bank,” he said. “Perhaps November will be quieter. Don’t hold your breath.”

“The IMF did upgrade its UK growth forecast for 2026 from 1% to 1.3%, although it warned that energy prices and borrowing costs would weigh on next year. Better today, perhaps, at the expense of a less attractive tomorrow,” he continued.

“France offered little reassurance. Riots and political turmoil added to concerns over its enormous debts, pushing borrowing costs higher. Investors seem increasingly reluctant to give indebted governments the benefit of the doubt.”

Alongside the market commentary, Yearsley provided data on the best and worst performing funds during October.

“The biggest surprise in the fund tables was the return of Nick Train, he said. “Lindsell Train UK Equity finished second with a gain of 10.83%, while Finsbury Growth & Income, also managed by Train, topped the investment trust rankings with an 11.34% rise.

“After years of watching his distinctive investment approach struggle, Train suddenly found himself back at the top of the charts. Reports of the death of his investment style may have been somewhat exaggerated.”

“At the other end of the tables, emerging markets had a month to forget,” said Yearsley.

“Latin America was the worst-performing sector, falling 9.96%, with China/Greater China down 9.14% and Global Emerging Markets losing 8.34%. Asia Pacific excluding Japan fell 7.9%, while Technology & Technology Innovation brought up the rear with a 7.12% decline. September’s star performer had suddenly found itself on the naughty step.

“Individual losses were painful: Barings Korea plunged 20.34%, JPM Korea Equity 17.14% and Matthews China Innovators 15.79%. HSBC Brazil Equity fell 14.84% and BNY Mellon Brazil Equity 14.57%. Brazilian investors weren’t celebrating Lula’s victory.”