Market Update: Calmer markets ahead of Trump inauguration
With global stocks bouncing back over 2%, last week was the best of the year! UK investors did not even have to rely on a weak pound to bolster Sterling-based returns. French stocks gained over 4%, while smaller cap stocks in most regions have outperformed larger caps – all good signs for broad-based growth.
Market Update: UK bond yield surge – more than meets the eye
Bond market woes took centre stage again last week. Much of this was driven by the strength of the US economy, as shown by Friday's strong employment data and signs that US consumer services are powering ahead (although, interestingly, wages rises were well-contained). We should bear in mind potential political effects, however, which need to be monitored this year.
Autumn Budget 2024 Recap
The Autumn Budget Statement 2024 introduced a range of changes that could significantly impact wealth planning strategies. From pensions and tax adjustments to shifts in the treatment of business and agricultural assets, the statement calls for individuals with substantial wealth to reassess their long-term financial goals. These changes present challenges and opportunities depending on your personal and financial circumstances.
Market Update: Happy New Year!
We start this year with a condensed Market update, sharing with you a few thoughts about some relevant events over the holiday period and the first few days of 2025. Next week, we will be back to the usual extensive format, bringing you a full account of asset class performance for December and for 2024. In the meantime, we show various asset classes (some of which overlap each other) so readers can get an idea of which areas did best and worst.
Market Update: Fed spoils the Christmas Party
Not only did the ‘Santa Rally’ not arrive this year, but global stocks had a notable sell-off on Wednesday night. This came after the US Federal Reserve (Fed) told investors not to expect many interest rate cuts in 2025, a pretty stark change from the giving mood they displayed last Christmas.
Individual Savings Accounts (ISAs)
For UK residents, one of the most effective ways to minimise tax on investment returns is through an Individual Savings Account (ISA). These accounts are a 'tax-efficient wrapper', safeguarding your interest, dividends and capital gains from taxation. Whether your financial goals are short term or long term, ISAs can provide the flexibility and security you need.
Market Update: Don’t fear the rebalance
Capital markets were choppy last week, unsurprisingly. At the end of a very strong year in stock markets, investors typically rebalance their holdings and take profits, so mild selling pressures are to be expected. This absence of a Santa Rally should not be taken as a sign of underlying risk sentiment deterioration. On the contrary, overall risk appetite feels strong – particularly from bullish US investors.
Planning and Preparing for Retirement
As we navigate life, reaching our 50s and 60s often brings retirement into sharper focus. This phase heralds a well-earned respite from years of dedication and hard work. For many, retirement is envisioned as the most extended holiday of their lives, offering opportunities to travel, engage more deeply with hobbies or spend cherished moments with family and friends. However, realising this idyllic vision requires thoughtful financial planning.
Market Update: Focus turns to Europe
November was a month to remember in terms of news and, for the US especially, one which was positive for economic and market optimism. We cover asset class performance in our usual monthly market review in an article below.
December Team News 2024
Hello and a very warm welcome to the Vizion Wealth Team News, Christmas is now fast approaching and we hope you are all looking forward to the festive period. We hope you have also had time to recover from any shocks in the budget on 30th October.
Market Update: Equities and bonds go separate ways
Although developed market equities were calm in sterling terms, stocks were more turbulent in local currencies. France was notably hit by the fragmenting of its ruling parliamentary “alliance”. Emerging markets were even less happy, partly thanks to Trump. Brazil was the weakest, after President Lula announced softer-than-expected spending cuts, threatening future fiscal stability.
Market Update: More and More Loose Ends
We are getting to that time of year when investment houses like us write their annual market outlooks. That is easier to do if the loose threads wrap themselves up before Christmas, but right now the opposite is happening. Uncertainty is growing, and it is creating a wide range of plausible medium-term scenarios. Some of them are very bullish for markets and the world economy, while others are more worrying.
Market Update: Reading Trump’s Tea Leaves
It was an up and down week for global stocks. Markets initially showed confidence in Donald Trump’s tax cut and deregulation agenda – but pulled back when Federal Reserve chair Jay Powell suggested interest rate cuts might have to be gradual. The S&P 500 was flat for most of the week but tumbled this afternoon amid rising bond yields. This came against a backdrop of strong gains last week, a sharply higher dollar and weak equity markets in most other regions.
Market Update: Known winner, unknown outcomes
For the sake of investors, we hoped for a quickly resolved US election, and we got one. Capital markets responded well to Donald Trump’s surprisingly decisive win, with US stocks rallying from Wednesday on. Investors deemed it good news for the US, but less so for Europe and the UK, whose stocks had a tougher week. This side of the Atlantic, equities and currencies sold off and underperformed rampant US markets by a remarkable 5%.
Market Update: US, not UK battening down the hatches
Rachel Reeves’ autumn budget dominated the UK news last week, but global investors were yet again preoccupied with the US election. Both created market jitters for UK investors, culminating in a noticeable fall in global stock prices on Thursday. We wrote theweek before last that traders were bracing for a consequential and uncertain election – which could create volatility as trading volumes thin. That is exactly what we see happening. The good news is that the underlying economic picture has not changed. The bad news is that nerves will stay high until we know who the next US president will be – and we might...
What the Autumn Budget Means for You
Rachel Reeves' first Budget as Chancellor had the rumour mill in overdrive based on the tax uplift required to fill a blackhole in the public finances. The biggest single tax change from the budget designed to address that blackhole was a 2% increase in the rate of employer NICs. Many of the rumoured changes, such as a return of the pension lifetime allowance, changes to pension tax relief, investment incentives for EIS & VCTs or a cap on pensions tax-free cash failed to materialise, which is good news for individuals saving for retirement.
Building wealth and achieving financial goals
Investing is an indispensable tool for building wealth and achieving financial goals. By allocating resources to various investments, individuals can accumulate wealth over time through capital appreciation, dividends and interest. For example, investing in a diversitied portfolio of stocks can yield significant returns, enabling you to grow your wealth far beyond what traditional savings accounts offer.
Market Update: Markets in brace position
Capital markets feel more tense than at any point since the beginning of September. Global stocks sold off slightly last week, but without sharp moves. It would be wrong to say that investors are fearful. In general, the global economic outlook is still positive despite geopolitical risks. It feels more like markets bracing for some big events. Britons anxiously await the autumn budget and, after a long build-up of mixed messages, it would help to just get it over with.
Market Update: No news is good news…
Capital markets quietened down last week. Global stocks are up from a week ago, and there is a sense that anxieties are fading. Risks and uncertainties have not gone away completely, but their short-term impacts on risk assets look smaller. There was a lack of bad new news, while the old news seemed less negative. That has allowed investors to focus on more concrete details.
A Guide to Mastering Financial Fitness in Your 50s
Entering your 50 is not just another chapter in your life; it's a profound and exciting phase in your financial journey. By this time, life may have settled into a more predictable rhythm. Perhaps your children are financially independent, and your career is at a peak, providing a stable income.Thoughts of winding down or retiring might be dancing on the horizon. This is why it's a pivotal moment to take a comprehensive look at your financial situation and ensure you're on the right path to achieving your future goals. Here's our guide to help you focus on key areas and...