Market Update: Easter Review and Outlook
The annual rate of inflation, as measured by the consumer price index (CPI) was reported at 7% in the UK, 8.5% in the US and even Germany recorded 7.3%. These are heights not seen for 40 years and were unsurprisingly front and centre of this week’s news flow. While equity market investments have historically demonstrated their inflation-hedging characteristics, the fact that investors appeared to shrug off these new peaks may well point to the belief that this is about as high as inflation is likely to get.
Market Update: Q2 Begins with QT Top of the Agenda
In aggregate, global markets have managed a decent enough bounce since the onset of Vladimir Putin’s invasion of Ukraine. Indeed, the awfulness of the news from the area has ceased to impact markets greatly. We have returned to worrying about the resurgence of COVID-19 in China, along with its impacts on the global supply chain and on overall global growth, and worrying about the US Federal Reserve (Fed) and its plans for tightening US monetary policy.
Lasting Power of Attorney
As someone becomes more unwell, they’re likely to find it more difficult to manage money and financial affairs, and may become too unwell to make decisions about health and care. A Lasting Power of Attorney (LPA) is a legal document in which someone (the donor) gives another person (the attorney) the right to help them make decisions, or take decisions on their behalf.
Market Update: Bank of England the only fan of Sunak’s spring budget?
Budget announcements are inherently political affairs. Even so, Rishi Sunak’s Spring Statement was a particularly political broadcast. The Chancellor talked up the 5p per litre cut to fuel duty with the fervour of a vegetable market stallholder (By contrast, Germany just slashed a litre of petrol by 30 cents), as he did with the rise in the National Insurance Contributions threshold. Reminding MPs of his avowed fiscal responsibility, he noted the fuel tax cut would last for only one year.
Spring Forecast Statement 2022
Chancellor of the Exchequer, Rishi Sunak, delivered his 2022 Spring Statement on 23 March, confirming implementation of the politically contentious 1.25 percentage-point rise in most National Insurance contributions, though with revised thresholds to mitigate the impact. He declared that his overall plan “builds a stronger, more secure economy for the United Kingdom.” The fiscal update included a number of specific measures and a new ‘Tax Plan’ which the Chancellor said would help families with the cost-of-living squeeze. Mr Sunak said, “People should know that we will stand by them, as we have throughout the last two years.”
Market Update: Changing Tides…
Last time we reminded portfolio investors of the importance of making sure that long-term investment decision-making is not overly influenced by short-term market fluctuations. At Vizion Wealth, we aim to ensure portfolios remain positioned appropriately, and are fine-tuned when medium-term changes in the economic and market outlook either necessitate adjustments or indeed present new opportunities.
Market Update: Back to the Past
As this week’s title suggests, for some of us it invokes memories of the cold war era of the West vs the USSR in the ‘70s and ‘80s. It is even more remarkable then, that at the time of writing, stock markets have rallied back to roughly where they stood this time last week. The same cannot be said about Russian asset prices, which have roughly halved since last autumn as the chart below illustrates. Perhaps this indicates who markets believe will ultimately pay for Putin’s megalomania.
Special Market Update: Russia Invades Ukraine
Given the devastating news today, we would like to express our utmost concern for the people of Ukraine and of course, our thoughts and wishes are with them. It is our duty as advisers to comment on the economic and financial impact of geopolitical news, but we do so with the utmost respect for the broader context and the devastating impact the current situation is having on people’s lives.
Special Market Update: Putin’s Recognition of Donbas
Russia’s aggression towards Ukraine reached a new level this week after Russia’s president Putin officially recognised the two self-proclaimed separatist ‘republics’ in Ukraine’s Donbas region. Most importantly, he ordered official troops to move in for what he declared to be ‘peacekeeping operations’. This has triggered the West to announce a stepping up of sanctions. Meanwhile Ukraine’s president Volodymyr Zelenskiy said Putin had merely "legalised" troops already present in the republics.
Market Update: The Lagarde Pivot Hits Insecure Markets
We made the case last month that we disagree with the market maxim that “How January goes, so goes the year”, at least for 2022. After a disappointing January for investors, February made a promising start, only to revert to last month’s wild down and up trading pattern towards the end of the week. This was despite the week not having been dominated by the US Federal Reserve (Fed) or Russian manoeuvres (admittedly Boris Johnson was still big news – but only in the UK).
Market Update: January déjà vu
Although 2021 did not close with another ‘Santa rally’, December – and the year as a whole – generated some pleasing returns for diversified investment portfolios. Compared to 2020 (another strong year in performance terms), equity investors fared considerably better than bond investors. Overall, and across asset classes, investors have experienced a notably better pandemic than so many other aspects of society.
Market Update: Christmas tidings of comfort, if not joy
Looking back, the year has exceeded some expectations and underdelivered on others. In terms of our expectations for the economic recovery and capital market performance, 2021 has been better for investors than we dared to hope and forecast at this time last year. On the other hand, I am surely not alone in having hoped the vaccination drives that began one year ago would have ensured further progress in putting the pandemic behind us than where we are now.
The Power of a Plan
A comprehensive financial plan helps you achieve your goals by analysing your current situation, planning for the future and providing continuous monitoring of progress towards those goals. A well-thought- out plan can help you protect yourself from unexpected events that could affect your ability to meet long-term financial commitments.
Market Update: New COVID Variant Flattens ‘Black Friday’ Feeling
It’s been a Thanksgiving week of mixed news. The European COVID case surge was surpassed in negative impact by the fears of a new variant emanating from South Africa. US markets hit new highs just before the holiday, but Black Friday has felt a bit dark. In itself, a new variant is not surprising. New variants are always a risk, but each of the past ones has been dealt with by the vaccines.
Market Update: Dollar strength and divergence caps a dull week for investors
Despite the negative news flow, be it COVID or politics, UK consumers are proving their resilience once again with both October retail demand and domestic consumer sentiment pointing up. Perhaps the buoyant jobs market is encouraging the UK public to be less concerned about inflationary pressures eating into their disposable incomes than some economists would expect, or it is equally possible that higher energy and food prices have not quite hit home yet.
Time for pensions to contribute towards building a better world
As we have been witnessing in recent years and months, climate changes are occurring in every region and globally. A new landmark report from the United Nations on the state of climate science has highlighted modern society’s continued dependence on fossil fuels, which is warming the world at a pace that is unprecedented in the past 2,000 years...
Market Update: Confused or determined central bankers?
Capital markets continued over the week to recover just as gradually from the September/early October downdraft as they declined then. Many commentators put it down to the continued strong Q3 corporate earnings announcements, which with 20%-40% year on year growth between Europe and the US has indeed provided a positive for stretched equity valuations.
Market Update: The state of the global economy
By most measures, economic growth has been disappointing over the last few months. Economists started the year with high expectations for the post-pandemic recovery to become a sustained expansion – optimistic that vaccines and rebounding confidence would spur activity.
Making Suitable Plans
Inheritance Tax can cost families thousands of pounds but there are various ways to legally avoid paying this tax. Without making suitable plans, your loved ones could face a tax bill of 40% on the value of everything you own above a certain threshold.
Portfolio Diversification
By maintaining proper portfolio diversification and avoiding the pitfalls of market timing, you’ll have the foundation needed to help manage your overall exposure to market volatility. Historically, the stock market has been up more than down.