Our Views on the Markets and the Economy
Articles, investment updates and economic analysis
Subscribe to our newsletter
After a hard fought race, the US electorate delivered their verdict on the last four years of a Democrat administration, with an emphatic win for the returning Donald Trump and the Republican party. Yet what does this victory mean for US assets? Will it be an echo of Trump’s first presidency from the 2016 vote, and how should investors respond to the impending change of leadership in the world’s leading economy?
This year has been unusually busy for elections, with over half of the world’s adult population voting in some form. The US election on November 5th will be the most significant, politically and in terms of market impact.
Successfully managing modern investment portfolios means expertly navigating an evolving set of challenges. Our key beliefs help to guide us when volatility is elevated, when the impact of policy actions is uncertain and give us the agility to respond as the fundamentals change.
UK investment assets are typically affected by local and global factors, often being particularly influenced by events in the US. As we now approach the UK general election, however, let’s examine the potential impact of this national event on UK asset prices.
The price of gold increased sharply in the last few months, with many factors being attributed for its rise, before falling back almost as abruptly. We look at the different reasons that can cause its price to climb, highlight our own holdings and explain why we think it has merits as part of a diversified portfolio.
A common goal among investors (and indeed investment providers) is to assess how a strategy is doing compared to competitors. Sometimes like-for-like comparisons are not so easy to attain, yet when you find an indicator that regularly proves its worth, it can greatly help investors to decide what level of risk and what investments are appropriate for them.
The last few weeks have seen dramatic developments in financial markets. After a prolonged period of monetary policy tightening in the US, UK and euro area there has been a marked shift in both sentiment and market pricing. The markets now think the next moves in policy rates will be down. While we expect policy rates to fall next year, we believe that markets may be premature in expecting immediate interest rate cuts; after all the Federal Reserve, Bank of England and the European Central Bank all remain cautious about easing when inflation is still above target. Nonetheless, it is fair to say that this is an inflexion point for financial markets.
Our investment approach is central to how we help clients achieve their goals. And although we mainly invest in passive funds and ETFs, a successful outcome very much relies on the active implementation of our ideas, analysis and convictions.
As we approach the half-way stage in the year it’s perhaps timely to review what’s happened in investment markets recently, and to look at the topics portfolios will need to address in the months ahead.
Not since the great financial crisis (GFC) of 2007-2008 has so much focus globally been on the stability of banks and their ability to repay depositors and investors. Our chief investment officer, Iain Barnes, answers some of the questions investors may have about the current situation and what it could mean for investment portfolios.
Team Contributors
Gerard Lyons
Charlotte Ransom
-
“I have a £1m house and £500k pension. How can I shield my children from inheritance tax?”
-
“How can we limit the tax we pay when taking my partner’s £700k pension?”
-
“My wife and I have £200k in our pensions. Are we on track for a good retirement?”
-
I’m 68 and retiring soon. How can I limit taxes when I take out my pension?
-
“How do I get the highest return taking the lowest risk on my £540,000 pension?”
Thomas Salter
Iain Barnes
Simon McConnell
In The Press
-
Read what the press have to say about Netwealth
