Market Update: Will the UK Property Downturn Change the Investment Landscape?
In the wake of Kwasi Kwarteng’s ill-received budget, mortgages were the hot topic. Lenders pulled swathes of mortgage products in expectation of sharply higher interest rates from the Bank of England. When those products were reintroduced a few days later, the rates offered were three to four times higher. The potential effects on consumers and households were well-publicised – and the backlash therein was no doubt a big motivator for the government’s partial U-turn.
Market Update: Reading the Runes of Last Week’s Market Bounce
Market volatility has been in the air all year and given the macroeconomic backdrop this is not at all surprising. A weakening global economy marred by war and labour market-driven supply squeezes, while simultaneously trying to cope with aggressive central bank rate hiking to prevent inflation turning permanent, all makes for the distinct whiff of recession. But volatile markets do not always swipe down, as the beginning of last week showed, nor do they stay volatile forever.
Market Update: Loss of Trust?
Last week provided the evidence for the fragility of capital markets as they grapple with the strain of transitioning from an ultra-low interest rate environment back to the one we knew before the global financial crisis of 2008. A policy mistake around the smaller part of the UK government’s fiscal measures aimed at fending off a looming recession rattled international capital markets to such an extent that it is now likely to create far more headwind than support for the UK’s economy in the winter ahead.
Guide to Family Protection
Welcome to our Guide to Family Protection. There are various complex risks in life that we all face, such as serious illness, an accident or death. What would happen if something were to happen to you? Would your family be able to cope financially with the impact an unexpected event might have?
Market Update: Competing Policy Measures Leave Markets Worried
The last two weeks have been sobering for investors world-wide, with all major markets (including bond markets) falling between 5% and 10%. This has come after an encouraging recovery rally over the summer that was driven by falling oil prices, which fuelled expectations that the worst of the inflationary headwinds were behind us, allowing central banks to pause their aggressive monetary tightening course, and that a turnaround in economic fortunes was therefore imminent.
Market Update: The Fed at work and China snubs Putin
Starting with investment concerns, the consequences of a European war continue to dominate our economy and markets, as it does throughout Western Europe and, to some degree Asia. Meanwhile, seemingly unaffected by the rest of the world, the US is blazing its own trail.
How to Reduce Inheritance Tax by Leaving a Gift
When you’ve worked hard and invested carefully to build your wealth, you want to look after it. That’s why it’s important to plan for your wealth preservation and the eventual transfer of that wealth.
Market Update: The End of Eras
With great sadness, we pass from the second Elizabethan age. Our Queen was a constant during this period of intensely rapid change. Across the political spectrum, we can acknowledge her ceaseless responsibility to her people. She retained her dignity as monarch throughout her reign supported by her faith and her humanity that was obvious to all.
Market Update: Waiting for Policy Action
The summer is nearing its end and with it the return of the more typical English late summer climes. It may feel as if markets have taken a hint with their 5-day downdraft until Thursday, although most outsiders will look at the week’s media frenzy and blame the tumble on the truly intimidating outlook for energy bills during the winter heating season.
Show me the money!
It’s not surprising that the world of investing can seem complex, especially in the current global economic climate. Investors face an endless supply of market news, many investment choices and often-changing market conditions.
Market Update: Delicate equilibrium
All eyes were on the world’s central bankers last week, who are guests of the US Federal Reserve (Fed) at its annual conference in Jackson Hole, Wyoming. Markets are particularly eager to hear what Fed chair Jay Powell has to say – hoping that his speech will give hints on the direction of US and global monetary policy.
Market Update: Will a New PM Be Good News for Investors?
We rarely talk about UK politics in our deliberations on the global investment markets. That’s not because we’re not interested. Rather, it is because domestic politics have less of an effect on the broader global assets that we invest in on your behalf.
Getting Set for Retirement
Welcome to our Guide to Getting Set for Retirement. As you approach the last five years before your retirement, there will be a lot of things to consider. You’ll need to think about your finances, your health, your housing situation and your plans for the future to live comfortably in retirement. In recent years, the changes to pensions legislation have created greater freedom and choice over how pension assets can be used. However, with freedom and choice comes complexity.
Summer Team News – Summer is here!
The staff at Vizion Wealth have been enjoying the summer sun and making the most of the lighter evenings. There has been wedding celebrations, birthdays, exam passes and trips away!
Market Update: Fear of Missing Out
Investors are feeling FOMO: the “fear of missing out” once again. Last week was a continuation of the trend from the start of July – which has seen a significant boost to both bond and equity markets. Curiously, the good feeling among investors seems unaffected by the bad news all around.
Is Inflation Eating your Savings?
The word ‘inflation’ had barely featured in the market’s vocabulary in the last three decades until it suddenly started to come back with a vengeance in 2021. As higher inflation looks set to persist in 2022, finding ways to generate a return on investments greater than inflation will be a key investment theme – otherwise your wealth falls in real terms.
DPMS Portfolio Commentary August
The second quarter of 2022 proved to be as volatile as the first, with equities and bonds alike suffering declines as inflation soared to record highs across the globe, above almost all economists’ forecasts. Interest rates also began to see increases in an attempt to combat inflation but did little to curb mammoth increases in the cost-of-living, deepening the risk of recession across global economies. The start of Q3 has proved slightly more positive than expected due to better-than-expected Q2 earnings reports from larger US companies, such as Meta, Twitter and Tesla, and President Biden’s announced Infrastructure plans to help...
Market Update: Markets Bet on a Perfect Landing
Bad news filled the airwaves last week. Faltering global growth, higher inflation forecasts and rising interest rates set a dour tone – capped off by a geopolitical crisis in Taiwan. UK investors were struck by the Bank of England’s dire warnings: a 13% inflation peak and a protracted recession are now in store for Britons, according to Governor Andrew Bailey. Predicted to last for five quarters, the looming UK recession is set to outlast the one following the global financial crisis in 2008/09.
Market Update: Positive Returns Amidst Negative Sentiment
For a second consecutive quarter, the US economy shrank in real terms. Yet the US Federal Reserve (Fed) raised interest rates by another 0.75% on Wednesday because the US economy is too strong.
DPMS Portfolio Commentary September
Q3 of 2022 has proved much more positive than the first half of the year despite the backdrop of recessionary warnings across the globe. Whilst Central Banks have continued to push interest rates higher at each opportunity, global inflationary figures have started to look as though they are starting to peak, with the US proving the key indicator for global inflation. However, there remain concerns for economic growth forecasts across developed economies being dampened by inflationary pressure and subsequent interest rate rises.