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I was only 14 years old during the glorious hot summer of 1976 when Climate Change wasn’t a thing and it no doubt influenced my view that childhood summers were always sunny. There were apparently 16 days where the temperature exceeded 32C, compared to the hot summer of last year when there were merely 9.

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Henley Royal Regatta relaxed their dress code for the first time due to the heat, although Wimbledon didn’t and spectators suffered in their jackets and ties in the Royal Box. The ’99 ice cream was in short supply, grass died everywhere, public fountains were turned off and Tube temperatures were infamous. Pity the City financier in their woollen suits in Victorian, un-air-conditioned offices. Windows were opened but let in little more than bus fumes and warm air from London streets.  But at least the lunches were long and liquid and client relationships were personal. This was where deals were done.

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At the time Britain was just coming out of one of the worst equity bear markets when the FT 30 fell by around 75%, before rebounding strongly and recovering all their losses in 1975. Inflation was brutal at around 25%, caused by several factors including the 1973 oil crisis, rapid wage growth and too loose monetary and fiscal policy, the three-day week and industrial action, Sterling weakness and high food prices due to poor worldwide harvests.

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A Minister for Drought was appointed by the government shortly before it rained heavily, prompting many to joke that the simple act of such an appointment broke the drought. Soon August will bring the usual exodus of senior partners vanishing to their yachts in the Riviera and Mediterranean villas. Has anything really changed?

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Comments from James Scott-Hopkins, Founder of EXE Capital Management.

The views are those of the author only.

The above does not constitute a recommendation to buy specific funds or assets. The value of investments can fall as well as rise. Past performance is no guarantee of future returns.‍

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