Welcome to The Monthly Compound — my personal recap of what happened in the world of money and investing from the last month, and most importantly, what I am doing about it.

📈 Equities: Another surprisingly strong month. Global developed-market equities gained roughly 2.7% through 28 August, continuing what has been a remarkably resilient year for markets despite war, inflation and stubbornly high interest rates.

🇺🇸 US shares: America led the charge again. The S&P 500 gained around 3.0% during August and is now up roughly 13% in 2026. Strong corporate earnings — particularly from the technology sector — continue to underpin the market, with AI spending showing little sign of slowing down.

🇬🇧 UK shares: After a very strong July, the FTSE 100 effectively took a breather, slipping around 0.4% during August to finish Friday at 10,824. UK equities remain close to record territory, but the renewed rise in inflation has complicated the outlook for interest rates.

🌏 Asia: A mixed picture, but Japan was one of the stronger performers. The Nikkei 225 gained around 3.2% during August despite another extremely volatile month for the yen. China, meanwhile, continues to struggle with weak domestic demand, its property sector and contracting manufacturing activity.

🏦 Interest rates: Higher for longer is back on the agenda. The Bank of England kept Bank Rate at 3.75%, while the US Federal Reserve remains at 3.50–3.75%. Fed Chair Kevin Warsh used Jackson Hole to make clear that the fight against inflation is not finished, pushing markets towards expecting another US rate rise.

📉 Inflation: Not beaten yet. UK CPI unexpectedly climbed from 2.6% to 2.9%, moving further away from the Bank of England's 2% target. US inflation was slightly more encouraging, easing from 3.5% to 3.4%, although it remains far too high for the Fed to declare victory.

🤖 Theme of the month: Markets keep climbing despite the noise. War, tariffs, expensive stocks, stubborn inflation and the prospect of higher interest rates would normally sound like a fairly unpleasant cocktail for investors. And yet global equities remain close to record highs. Strong earnings — particularly from companies benefiting from the AI investment boom — continue to overpower much of the bad news.

📈 Equities: The foundation of my portfolio. This month, I invested around 66% of my available investment capital into low-cost index funds, giving me ownership of thousands of companies across the world. This will always be the case, consistent, repeatable investing in global stocks.

🍷 Fine Wine: My alternative investment allocation. This month, around 32% of my investment capital went towards continuing to build my fine wine portfolio. This is higher than normal, honestly, its because I found a new wine I really like, so I decided to buy more whilst the price was good. However, I’m still under my 5% target allocation - so provided I stick within that boundary, I’m not over exposing myself to this asset.

₿ Bitcoin: A small, higher-risk allocation. This month I invested around 2% of my available investment capital into Bitcoin, while ensuring it remains a controlled percentage of my overall portfolio. Bitcoin rocketed this month by 25% - and it came completely unexpectedly! Like stocks, you can’t predict these moves, simply invest and hold.

💹 Growth: During August, my total personal portfolio wealth increased by 4.35% compared with July, rising by around £11,771. Of that increase, £2,260 came from new contributions, with the remainder driven by investment growth and market movements. It was a strong month overall, particularly given how slow and uneventful markets often felt day to day — a useful reminder that progress can still be happening quietly in the background.

Bitcoin was one of the standout movers in August, reminding investors just how quickly sentiment can turn in risk assets. While inflation and interest-rate concerns remained in the background, money still flowed into higher-risk areas of the market — and Bitcoin was a clear example of that.

For me, the chart is less about trying to predict where Bitcoin goes next, and more about what it says about investor behaviour. When assets like Bitcoin rally strongly, it usually tells you that confidence, liquidity and risk appetite are still very much alive.

That said, I’m not changing my strategy because of one strong month. I still view Bitcoin as a small satellite position, and I’m happy to keep it capped at around 2% of my portfolio rather than letting excitement dictate allocation.

Nothing dramatic. I’m continuing to add £50 per month and keeping Bitcoin as a small, controlled part of the portfolio. Bitcoin is still an incredibly risky asset to me, therefore I will always tread cautiously.

Boredom is part of the process.

Not every month needs fireworks. When markets move slowly, the temptation is to chase something more exciting or change a perfectly good plan. August was a reminder that long-term investing often means doing very little — staying patient, sticking to the strategy and letting time do the heavy lifting.

September is historically the weakest month of the year for stock-market returns, so a bit of volatility would be nothing unusual.

This year, rising bond yields, the war in Iran and stubborn inflation could add further pressure to valuations. For me, that makes patience even more important — sit tight, avoid reacting to short-term noise and, where possible, invest a little more while prices are under pressure. See you next month!

The Compounder
Long-term investing made simple.

The Compounder is for financial education and commentary only. I am not authorised or regulated by the Financial Conduct Authority and I do not provide financial advice, investment advice, or personal recommendations. Nothing published here should be taken as a recommendation to buy, sell, hold or switch any investment, fund, pension, ISA, crypto asset or financial product. Always do your own research and consider speaking to an FCA-authorised financial adviser if you are unsure.