August used to be known as the ‘silly season’. Everyone who made the news was away on holiday, nothing happened and newspapers were desperate to fill their pages. So rather more obscure stories made it into print…
That, of course, was before Donald Trump. And Brexit. And Venezuela, Argentina and Greece. And…
In short, August is now just another month and this year it saw the world’s two most powerful economies, the USA and China, continuing their trade war as the US imposed an additional round of tariffs on Chinese imports and Beijing inevitably retaliated. Domestically, there were more woes for Donald Trump as more members of his former inner-circle decided they would rather do a deal with the prosecutors than the President. Could he be impeached? At this stage it would seem unlikely but the net is tightening. Continue reading →
Over the last two decades, emerging markets have been attractive to investors and investment strategies have followed an ever globalising trend. High growth rates in developing nations have meant that large profits have been generated in riskier assets outside of the more stable markets that have long dominated global economics.
Often double-digit growth in the BRIC nations – Brazil, Russia, India and China – has seen wilful investors reap great profits through investing in countries with plentiful opportunities, which often carry a higher degree of risk. Continue reading →
We’re all used to taking our cars for their MOT, aren’t we? Before we book it in for the test, we may well get a mechanic to check the vehicle over to make sure it will pass with flying colours. It’s a useful time to put in new brake pads, check the suspension and make sure the lights are all in working order. Continue reading →
Row of typical English terraced houses in West Hampstead, London
Equity release plans, also known as lifetime mortgages, allow those over the age of 55 to borrow against their home. Thanks to decades of rising house prices, for some older homeowners this can mean there is plenty available to borrow. The number of people opting for these plans saw a 40 per cent increase year-on-year in 2017, with a record breaking £3bn being borrowed. It seems using your house to fund your lifestyle is becoming increasingly popular.
This last week has seen financial market corrections all over the world, with markets handing back the strong gains made since the start of the year. During discussions with clients this week some have asked why has this happened now? Ironically it all started with good news in the United States last Friday. This came in the form of higher than expected wage growth for workers. This in turn means that the US economy is doing well. But, at some point the Central Bank in America (The Fed) will have to increase interest rates to try and curb the rise of inflation.
Financial markets generally don’t like it when interest rates have to rise, although that sometimes this is inevitable. And so we have seen the equity markets react all around the world. There is a very old saying in finance – when Wall Street sneezes – the rest of the world catches a cold. And so this saying is still true today because with what happened in the US last Friday has sent a shock wave around the other parts of the world.
However, is this a start of a global downturn? Absolutely not in our opinion. The fundamentals of the global economy are still very strong. We are some way off a recession in many parts of the world, certainly in the US. It is just the financial markets having a little correction, that’s all. Ironically, we have had such a good run over the last 18 months or so that volatility (the downside of markets) has been something we are not used to. We have to get back to being used to it, simply because the way financial markets have been for the last 18 months is not really normal.
What should you do? If you have spare cash make use of the Impulse Save feature on the website, because it is a great time to add money to your portfolios. If you haven’t got spare cash do nothing, apart from stay off your website. As I always say ‘when financial markets are making the number one headline on the news, then you know it’s bad’ so leave off it for a while. Honestly, that is the best thing to do.
On Wednesday 3rd December the Chancellor George Osborne announced the details in his autumn statement. We have covered a few of the areas here below that may affect savers. This is in addition to the pension reforms that are due to come into effect in April 2015, which will allow people to take greater control over their pension funds, and remove the requirement to purchase an annuity.
These are exciting times and it gives people plenty of opportunity to make adequate provision for their future.
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