Market Update: Mood Swings
For some time, bond and equity markets have been experiencing teenager-like mood swings. As February ended and March began, government bond yields continued their march higher to levels last seen last autumn, when stock markets tumbled as a result. Yet this time, stock markets have ricocheted between optimism, namely the surprising resilience of consumer demand and resulting relative company earnings stability, and pessimism that the same economic resilience will keep inflation pressures high, forcing central banks to keep raising rates higher for longer, which undermines valuations and said resilience.
Time for a tax health check?
Personal tax planning should be at the top of your agenda as the end of the current tax year is not too far away. Taking action now may give you the opportunity to take advantage of any remaining reliefs, allowances and exemptions. At the same time, you should be considering whether there are any planning opportunities that you need to consider either for this tax year or for your long-term future. We’ve listed a few reminders of the issues you may want to consider as worthy of including in your 2022/23 tax health check to-do list.
Market Update: Balancing Acts
Last week has seen global stock markets give back a portion of the gains made in the first few days of February. Still, since the start of the year global stocks have made a total return of around 5% in £-sterling terms (Source: Bloomberg)...
Market Update: A dose of realism creeps in
Last week, the UK’s leading stock market index, the FTSE100, finally passed the psychologically important threshold of 8,000. And yet, after the strong start to the year in January, February has brought consolidation rather than a continued uptrend.
Market Update: A challenging week brings investors back down to earth
Overall, UK bond and equity markets slipped back last week, despite the FTSE 100 edging higher until Thursday lunchtime when it reached a new all-time price high of 7494.57. Since last week’s US employment data, the asset market rally has had a key component weaken. In January and early February, investors had spied a decline in longer-term inflation pressures, but investors have become less sure in recent days.
Guide to Individual Savings Accounts
Time is running out to take advantage of this year’s Individual Savings Account (ISA) allowances. On 6 April when the new tax year starts, if you haven’t used all of your or your children’s ISA allowances from the previous tax year, it will be lost forever. Check out this guide to Individual Savings Accounts.
Minimising or even avoiding Capital Gains Tax Liabilities
Gains are calculated by subtracting the purchase price and related expenses (such as sales charges) from the selling price. They are generally taxed at a rate higher than income taxes in order to discourage speculation. If you plan to sell assets that have appreciated in value, such as real estate, stocks or bonds, it is important to be aware of CGT and how it can affect your bottom line. Proper planning can help you minimise or even avoid CGT liabilities.
Winter Team News – Spring is round the corner!
The Vizion Wealth team have had a busy start to the year with lots to keep us busy in the office, some exams passes and also some exciting trips!
Market Update: Are central banks transforming from hawks into doves?
Last week has been like the other four weeks of 2023: dominated by central bank action, inflation, and despondency over the UK economy. Meanwhile, stock and bond markets stayed buoyant. The monthly US jobs report could have upended the week but so far, after a brief market wobble, much of the week’s gains have been retained (we write before the close of trading). Indeed, the FTSE 100 may even close at a historic high today.
Market Update: Goldilocks in the air
Recent macroeconomic data releases across the western world report declining rates of inflation and no longer overheating (but nevertheless still positive) economic growth. In the US, the important milestone of the rate of personal consumption expenditure inflation falling below the interest rate has been reached. Perhaps unsurprisingly then, the term ‘Goldilocks’ (not too hot, not too cold) has returned to the market narrative.
2023 Financial Resolutions
Most of us have probably made at least one New Year’s resolution, but how many of us will actually go on to achieve it? We all have different financial goals and aspirations in life, yet these goals can often seem out of reach. In today’s complex financial environment, achieving your financial goals may not be that straightforward.
Market Update: PPI pullback and the ‘new normal’ for inflation
Judging by capital market expectations, we are over the hump. The global inflation crisis of the last year-and-a-half has peaked, and price increases are now expected to trend downward in the US, UK and Europe. US Treasury yields have fallen consistently since the beginning of November and are now back to where they were in September – just before the world had a UK-inspired bond rodeo. This implies lower growth and price expectations in the years ahead, and comes on the back of a 6.5% December annual inflation reading in the US – its lowest in more than a year.
Market Update: Football fever saves UK from recession
The new year is proving to be a happy one for almost all asset classes and regions. The FTSE 100’s intraday all-time high of 7903.50 is less than 100 points away at the time of writing, and we’re closer than we were last week. The global financial press tell us markets are stronger because we should be positive about a likely easing in monetary policy, and this easing should take place because – as business leaders say – conditions are awful.
Market Update: January Surprises
“Welcome to 2023” said the note on the restaurant door. The door was shut, the lights were off, and another note explained that rail strikes meant staff and customers were unable get there. All the venues in this City-of-London street were closed in a scene reminiscent of the height of the 2020 lockdown. Life can be tough in the battle for a fair share of the economy’s revenue flow, and we cannot have been the only ones left feeling that the UK is off to one of the most subdued starts to a new year we can remember.
Don’t ‘Sleepwalk’ Into Retirement
As we enter our later years, it's more important than ever to have a solid retirement plan in place. Unfortunately, for many of us, that simply isn't the case. According to recent figures, one in six people over the age of 55 in the UK have no pension savings whatsoever[1].
Market Update: Central bank scrooges cancel Santa rally
In our opinion, it's too early for the developed world’s central bankers to say the battle against inflation is nearing an end, even though year-on-year inflation has started to move off the peak. Inflation rates published this week show they may have peaked in aggregate, but consumer prices are still heading generally higher, which is likely to also keep inflation overall higher for longer.
DPMS Portfolio Commentary December
So far, Q4 of 2022 has been more positive than some anticipated with better-than expected American inflation data and hopes of The Federal Reserve easing rate rises, a less severe beginning to Winter for Europe, hints that China may begin to ease it’s zero-COVID policy and the return of traditional fixed interest as an attractive long term investment following Jeremy Hunt’s reversal of the mini-budget. This all comes despite Central Banks continuing to raise interest rates and warnings of recession across the globe.
Market Update: Fed up before Christmas
One of the first principles of any sound investment process is to permit and nurture the discourse of differing opinions in order to generate the most robust insights and decisions possible. Unsurprisingly then, this is exactly what has characterised this year, as we have absorbed various guidance and deductions regarding possible underlying reasons for asset price movements. As the year comes to a close, some of the year’s big trends have showed signs of stopping or even reversing, and we have debated the ‘reasons’ for those changes vigorously. This process is important because we must understand the past and the...
Guide to Leaving a Tax Efficient Legacy
If you thought Inheritance Tax was just for extremely wealthy people to worry about, think again. Rising property prices have meant more estates than ever are likely to face an Inheritance Tax bill.
DPMS Portfolio Commentary February
Given our more cautiously positive outlook for 2023, including a mild economic recession, continuously high interest rates and the reopening of the Chinese economy, the Vizion Wealth Investment Committee have agreed to a shift towards a balance of Defensive and Cyclical equities utilising both Growth and Value styles. This comes in the form of a move towards Value funds in the UK, Europe & North America which have historically outperformed during periods of interest rate increases and a move towards Growth funds in Asia and Emerging Markets in conjunction with the Chinese economy reopening and supply chains becoming re-established.