As the long hot nights become a distant memory, many investors will be giving their portfolios a sneaky peek to see how their investments are faring. Hopefully it will be a nice surprise as markets have risen since June.

A lot of people will have been too scared to look at their portfolios over the summer given the carnage experienced across global markets in the first half of 2022.

While many stocks are still sitting depressed, there are plenty which have started to bounce back. So, if you’ve just come back from holiday and don’t welcome the prospect of returning to work, the recent performance of your investment portfolio might still put a smile on your face.

One of my personal portfolio holdings is Fidelity Index World (BJS8SJ3), a fund that tracks an index of approximately 1,500 companies across 23 developed market countries. Between the start of January and mid-June, the sterling version of the fund had fallen by 14% in value. But the rebound has been fast and hard. As of 17 August, the fund has clawed back most of those losses and at that point it was only down 1.4% year-to-date.

That vindicates my decision to have kept investing money each month into the fund while the markets were weak earlier this year. I essentially managed to buy units at discounted prices not seen since 2021.

Even though markets are now picking up, I will continue to put more money into the fund. It’s a no-brainer way to access companies around the world at a low annual charge of 0.12%.

I’m not the only one feasting on market opportunities. It feels as if quite a few investors   are regaining their appetite for equities. Since mid-June, the US Nasdaq index is up 21.4% and the S&P 500 index is trading 16.5% higher.

Growth stocks which went out of favour late last year have been among the stronger risers recently. In the past month, the MSCI World Growth index has jumped by 12.1%.

The big question is whether we’re at the turning point for markets and it’s all plain sailing upward from here. The experts don’t seem convinced.

On 16 August, Bank of America published the results of its latest survey of fund managers around the world. It said that while sentiment was no longer ‘apocalyptically bearish’, fund managers were still sitting on an average 5.7% of assets in cash which the bank considers to be high.

In a strong market, cash in a portfolio can act as a drag on returns. In more uncertain times, it gives you the means by which to snap up bargains if prices suddenly get a lot cheaper.

Given the ongoing uncertainties around inflation and recession, having some ‘readies’ to hand might be a wise move. It’s great that markets are currently moving higher, just don’t assume it’s going to be a smooth ride.

DISCLAIMER: The author owns units in Fidelity Index World

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