Two things are uppermost on my mind, as I try to think of some nuggets to fill this column. Firstly, wishing that I had never brought up the subject of volatility! Nothing seems to have been steady in world markets for months, and as I write, the FTSE100 is some 10% less than when I wrote my last article (having only just recovered a little under 300 points from a recent low).
During the summer months, in what is often referred to as ‘thin’ trading – as volumes tend to be lower, market ups and downs are far from uncommon. However, the current world economic climate has meant that the customary excitability has been magnified a little more than somewhat. It may well be that this interesting state of affairs goes on for some while, unless there is some form of human intervention. Given that there are going to be elections in both the UK and the USA in the next few years, and the propensity for Governments to sweeten the electorate for a year or so prior to such elections, then such stimulus is far from unexpected. In fact, Barack Obama has just made a proposal for a new round of expenditure totalling some $447bn, designed to stimulate the US economy. If these proposals are agreed (and this is far from a foregone conclusion), then it may pour some useful oil on troubled waters. However, it may well not be enough to cure the malaise. Some commentators are saying that it could be 2013 before there is an appreciable upturn in major western markets. Continue reading In it for the long term→
As I write this article, the FTSE is a little over 6000, pretty much as it was when I was writing for the last issue of The Whistler. Not that interesting in itself, but having been down by some 400 points in the 2 months between, it shows the volatility – to which I referred in my previous article.
There are many factors involved in what moves the markets, but recently eyes have turned to Greece. The markets are not worried about Greece, the country; nor particularly about Spain, Ireland or Portugal (the so-called PIGS). What does concern them is the affect that the problems in these countries may have on the banking system within the Euro-zone. The Governor of the Bank of England, Sir Mervyn King, summed it up by saying “the direct exposure of any of the British banks to Greek debt is negligible. The unknown is anyone’s indirect exposure. It is nigh on impossible to trace the tree all the way through – what happens if a British bank has lent to a French bank who has lent to a German bank who has lent to an Italian bank who has lent to a Belgian bank, which is about to go under because it cannot take the losses on its portfolio of Greek debt?” The answer is that no-one knows. Continue reading Looking for Answers→
I have had the good fortune, in the last month or so, to meet with a couple of Fund Managers from ‘boutique’ investment houses. They each spoke eloquently and robustly for the best part of an hour, one on ‘multi-asset’ investing, whilst the other concentrated on Japan. There was a phrase that was used, which was particularly relevant – not just to one country – but to many. The phrase was “the Stock Market is not the Economy”. Continue reading Finding your Way→
One of the joys of being an Independent Financial Adviser, (and writing a column, such as this) is having to foretell the future. Luckily, having a vaguely psychic ancestor, I am well equipped to deal with such matters. I should say that I am referring to the 2011 Budget day, which, by the time you read this, will be history. My problem is trying to consider the “known knowns” and the “unknown unknowns” (thanks to Donald Rumsfeld), these being the aspects that have been announced already and will come into effect in the new tax year, and the measures announced on the 23 March 2011, unknown to me at the time of writing. The first Budget following an election, furthest from the next trip to the polls, is generally when most of the unpleasant work is done, as Mr Osborne aptly demonstrated. Continue reading No Give-aways this Time→
If you have any questions or concerns that you would like Sam from the local Age Concern service to answer, write to us at whwhistler@aol.com and we’ll ask Sam’s advice.
At the Age Concern Information and Advice Service we are sometimes approached by family members supporting an older relative, faced with a decision about residential care. As well as the prospect of having to leave their home, older people may be concerned about having to sell that which for many people is their biggest asset. While the government has set up a commission to consider how social care will be funded in the future, it is likely to be some time before any changes are made. Having some information about what the rules are now can help people consider their options. Continue reading Paying Care Home Fees→
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