Our Views on the Markets and the Economy
Articles, investment updates and economic analysis
Inflation may be decelerating in the UK but the level of prices is far higher than only three years ago. This helps explain why the cost-of-living crisis is still an issue for so many people. In March, the annual rate of inflation decelerated to 3.2% from 3.4% in February. Yet consumer prices were 19.5% higher than in July 2021, which was the last month on which the 2% inflation target was hit.
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.
Our CEO Charlotte Ransom regularly answers questions for readers of the i paper – helping them to better understand their investments and how to effectively plan their finances to achieve their long-term goals. Many of these questions are also highly relevant for Netwealth readers.
Last June I wrote a column in the Financial Times saying that interest rates should – and would – stay higher for longer in western economies. At that time it was not the accepted norm. It is now.
We often hear about the importance of reviewing our wills and estate plans, but what about your pension? When you pass away, your pension will normally not be part of your estate and therefore exempt from inheritance tax. So have you ever thought about what happens to it after you're gone? That's where something called an 'expression of wish' form comes in.
What will happen in April? Let’s first remind ourselves of some of the notable events over the last month: the UK Budget, which reflected the weakness of the economy and this in turn limited the Chancellor’s room for policy manoeuvre; China’s annual Two Sessions in which an achievable growth target of 5% was outlined for this year; the Bank of Japan’s (BOJ) decision to shift away from its negative interest rate policy (in place since 2016) and raise policy rates above zero; and the Swiss National Bank (SNB) deciding to cut policy rates and becoming the first major western economy to embark upon monetary easing.
While the end of the tax year on 5th April is fast approaching, there are still things you can do to make sure your finances are in order and to ensure you are being as tax efficient as possible.
This week’s decision by the Bank of Japan (BOJ) to hike interest rates and to move from negative to positive policy rates is a potentially monumental decision. It suggests that the BOJ thinks, finally, that the economy has turned the corner. I think it is right.
In recent years, Japanese stocks have enjoyed a period of stellar relative performance. Their resilience during the broader market weakness of 2022, followed by their outpaced rise during 2023 and so far in 2024, has been especially striking.
Team Contributors
Gerard Lyons
Charlotte Ransom
-
“I’m worried about the fees on my £600k pension pot. Are some costs being hidden?”
-
Wealth management uncovered – clients will be the winners and it’s long overdue
-
“I’ve inherited £240k. Should I ask a financial adviser what to do with it?”
-
“I’ve just got divorced – how should I invest my £460,000 settlement lump sum?”
-
“My husband and I downsized – what should we do with the £330k?”
Thomas Salter
Iain Barnes
Simon McConnell
In The Press
-
Read what the press have to say about Netwealth
