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.
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.
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.
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.
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.