Market Update: Return of calm bodes well for Spring
Easter lies behind us and the second quarter of the year ahead. Considering how unnerving the first three months of the year were, UK investors in globally-diversified multi-asset portfolios have not fared too badly. Mildly positive returns across the risk spectrum tell the story of another risk storm having passed without sinking global capital markets.
Critical illness cover, your questions answered.
People are increasingly becoming more concerned about the possibility of being affected by a critical illness such as cancer, stroke or heart attack, according to new research findings[1]. This is reflected in the fact that searches for ‘critical illness insurance’ have skyrocketed, with, on average, 6,800 people searching for ‘critical illness cover’ every month, mostly asked on Google.
Market Update: Spring of hope following winter of doom?
This year began in anticipation of imminent global recession, but imminent did mean immediate, and as the second quarter gets under way, the chances of a global recession may be less now than they were.
Winter Team News – Spring has sprung!
The team at Vizion Wealth would like to wish everyone a Happy New Tax Year! I’m sure you can imagine; we have had a very busy couple of months and are glad to be seeing a little bit of sunshine, the lighter evenings and the cherry blossoms starting to open.
Market Update: Markets put bank stress behind, but challenges remain
The first quarter of 2023 is now behind us, and while March ran run the whole gamut of emotions for investors, we end the month (and quarter) on a fairly positive and quiet note. For the average UK investor who holds their investments in a range of risk profiled portfolios, the quarter ends at levels above, or at worst, fairly close to where they started the year, so not really a ‘down’ quarter after all.
Wealth Succession
Financial planning can be a daunting and uncomfortable conversation for many, but thankfully attitudes towards talking about money are changing. Wealth succession should be an integral part of your financial plan as early as possible – because the right preparation now can have positive long-term impacts on future generations.
Market Update: UK Inflation Shocker
Britons got an unwelcome surprise last week. Inflation, as measured by the consumer prices index (CPI), climbed 10.4% year-on-year in February, higher than January’s 10.1% figure and above economists’ expectations. Before this news, things were looking better for the UK economy, albeit only slightly. Falling fuel prices, easing global input costs and a small but consistent slide in monthly inflation had suggested ‘peak’ inflation was behind us, a view even endorsed by the Bank of England (BoE). Market rumours were that the central bank might slow down or even suspend its interest rate rising cycle in response.
2023 Spring Budget Highlights
Jeremy Hunt delivered his second statement as Chancellor of the Exchequer with a Budget focused on growth and the structural issues within the UK economy. The issues he addressed included labour participation, business investment, innovation and productivity.
Retirement planning for every life stage.
No matter what stage of life you’re in, it’s never too early or late to start planning for your retirement. By taking a personalised approach, you can develop a retirement plan that will work for you throughout your life.
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.
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.
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.
DPMS Portfolio Commentary March 2023
March 2023 has been somewhat of a rollercoaster ride as investors have processed a variety of information, led by markets absorbing news of a number of bank bail outs started with the run on Silicon Valley Bank (SVB) and smaller New York based Signature Bank and the impending impact on interest rate policy led by the US Fed.