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.
Market Update: Not so bad, it is almost good
December has begun on a positive footing for investors. A renewed pivot in sentiment, with market participants choosing to focus on the positives rather than the negatives, has brought the third extended market upswing of 2022, with various equity markets now trading above bear market territory again.
Investing for Positive Change
Over the past few decades, there has been a growing interest and awareness in investing in companies that take into account environmental, social and governance (ESG) factors. This type of investing – also known as sustainable, responsible or impact investing – aims to generate both financial returns and positive social and environmental impacts.
Market Update: Markets give thanks
The last week of November is generally a quiet one for markets. Many professional investors head back to family homes in the days before Thanksgiving, and will have already closed down their risk positions for the year. Few like to be exposed to markets when there are lower trading volumes in December, and this may be one of the reasons why US equity markets tend to enjoy a seasonal boost in the last quarter.
Market Update: Plugging the holes
The Autumn Statement, budget-in-all-but-name, had been sign posted as very likely to bring bad news to UK taxpayers, as the third Conservative government of this parliament changed course from Trussonomics back to Rishinomics. What was announced in the end was less bad than what had been leaked beforehand, which is how bad news tend to be sold. With fiscal responsibility returning to the UK, and with it a certain predictability in policymaking, this Autumn ‘budget’ was perceived as quite sensible from a capital market perspective with sterling and bond yields closing within their most recent trading ranges.
2022 Autumn Budget Highlights
Jeremy Hunt delivered his first statement as Chancellor of the Exchequer at a time of great challenge for the UK and global economies with the backdrop of sky-high inflation, recessionary warnings, high interest rates and the ongoing war in Ukraine. In his first few days in office, he had already reversed most of the measures announced in his predecessor's September Mini Budget. He has now set out a series of tax rises and allowance freezes & cuts to help combat the ‘black hole’ of public spending set out in the September mini-budget.
Cost of Living Crisis
Older people in the UK are increasingly returning to work, [1] according to new research. The cost of living crisis is now affecting many pensioners drastically. The research also found that the proportion of older people who are self-employed has more than doubled over the same period.
November Team News – Winter Draws Near
Firstly, we would like to welcome our new team member, Tara Wright, who has joined as a Senior Administrator and Back Office Manager. Tara’s employment background has always been within Independent Financial Advice and she is very passionate about providing excellent client service. In her spare time, Tara enjoys going to the gym, taking her cockapoo Lola on long walks with her husband and she is also a sports fan – particularly the F1!
Market Update: Signs of ‘peak inflation’ emboldens markets
There were three big market-moving stories last week: the US midterm elections, the latest crash in the surreal world of crypto currencies, and the release of US inflation data for October. By Friday, it was the lower-than-expected inflation data that dominated in terms of market activity.
Inheritance Tax Receipts Reach £6.1 billion
We all want to leave a legacy and make sure the ones we care about most are well taken care of when we’re gone. That’s why making plans for Inheritance Tax is so important, to have confidence that your children, grandchildren and those you hold dearest will be taken care of long into the future.
Market Update: Diverging paths accompanied by seasonally scary messages
Considering the gloomy news last week from central banks in the US and UK, investors enjoyed a decent enough start to November. Following on from the rebound over the second half of October, it has been welcome news that capital markets no longer seem to overly mind when central banks push through yet another set of jumbo rate rises, accompanied by a continuation of gloomy outlook statements.
Market Update: US slows, Europe’s winter outlook improves, UK back to start
The most turbulent October experienced by UK bond markets since 2008 is drawing to an end and one could easily get the impression nothing of significance happened. Sterling is back to where it traded just before that fateful 23 September ‘fiscal event’, and bond yields are likewise roughly back to where they started in Autumn. This is good news: it shows the UK still has effective institutions capable of reversing errors and preventing major collateral damage. Unfortunately, though, some of its credibility in international capital markets has been lost. As a result, the government’s fiscal headroom of what it can...
Your Financial Roadmap
When it comes to planning for your financial future, a roadmap can be an extremely helpful tool. By outlining your current situation and mapping out where you want to be, you can develop a clear plan of action that will help you achieve your financial goals.
Market Update: The World Beyond the UK
Given the volatility in UK politics over the week, broader capital markets felt like a sea of calm in comparison. As far as the outcomes from the political side are concerned, markets had already priced in the upside on sterling, based on the belief unfunded tax cuts were no longer on the agenda, but not another leadership hiatus or even the possibility of an early general election.
Guide to Maximising Pension Savings
Many people are feeling the pressure on their finances at the moment due to the backdrop of rising inflation and the cost-of-living soaring. In these circumstances, it can be difficult to think about your long-term finances or even contemplate saving for the future. Even in the current climate there are ways to maximise the value of any pension savings you do have.
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.
DPMS Portfolio Commentary November
As we are expecting the remainder of 2022 to remain volatile with further interest rate hikes and the effects of a recession, the Vizion Wealth Investment Committee have agreed to remain maintain a more defensive style to portfolios, further reduce exposure to Small-Cap Equities, balance our Chinese & Indian Equity exposure and start to increase positioning towards traditional fixed interest given the recent sell off of bond capital values.