Our Views on the Markets and the Economy
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Inflation is surging and while its effects are most immediately evident in the rising cost of living, it’s also important to examine how much it can affect your financial plans. And it doesn’t have to be high – even relatively subdued inflation can have a significant impact on your future if you don’t prepare for it.
It’s not an overstatement to say it has been a challenging start to the year for investors. Surging inflation, interest rate hikes, slowing growth and the conflict in Ukraine all make it a difficult environment to invest and feel reassured. But it should encourage you to know we have the experience and expertise to help guide your investments through difficult times.
There has been much commentary recently about falling bond prices, especially around coverage of US Treasury bonds. But what does this mean for investors who hold bonds and even for those who are not invested in this asset class?
The world economy looks set to slow sharply this year, with technical recessions in the form of two successive negative quarters of growth likely in a host of countries, including the US, UK, and the major economies of western Europe such as Germany and France. Global growth could slow towards 3% (based on the International Monetary Fund’s measure), and while positive, growth rates on this measure of 3% are often low enough to be referred to as a global recession. This weakness will continue into 2023.
Our CEO Charlotte Ransom tells Ian King about how careful financial planning can help alleviate the cost-of-living crisis – and how meaningful human interaction paired with the latest technology gives investors better control, greater transparency and much more value for their money.
One of the significant focuses for financial markets in recent weeks has been developments in China. A zero-covid policy has triggered a sharp economic slowdown and also is leading to wider contagion, as supply-chains affecting global trade are impacted. This is the latest evidence of China’s growing importance to the world economy. So, let’s look at five factors in China to better understand the implications of its decisions and how they affect the investment landscape worldwide.
The Bank of England reaches the milestone of a quarter-century of independence in early May. After some initial benefits, it is hard to claim that the experience has been an unbridled success. There are strong reasons this milestone should trigger a fundamental rethink of the Bank’s remit and governance.
The importance of planning ahead effectively may seem obvious and often overstated. However, as our latest research findings show – with vital lessons from retirees about retirement – it’s all too easy to regret not taking certain actions, or to not be sufficiently prepared. But there are things you can do to tip the balance in your favour.
The big picture has not fundamentally changed recently. Latest developments reinforce existing market expectations of slowing global growth, elevated inflation and tighter monetary policies in most countries.
Surging inflation, the war in Ukraine and the continuing knock-on effects from Covid-19 have sharpened our focus on getting value for money. An emphasis on more cost-effective investing, therefore, takes on an even greater importance: over the medium term, lower overall costs ultimately help mitigate losses and enhance gains.
Team Contributors
Gerard Lyons
Charlotte Ransom
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Why transparent investing – and transparent advice – matters
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Why shouldn’t Investors Expect Greater Transparency, Better Consumer Education, plus Simple Advice?
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Missed Opportunity: How Investors Counted the Cost of being Overcautious in 2019
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How a Network gives Families Investment Control and a More Efficient Way to Invest
Matt Conradi
Thomas Salter
Iain Barnes
Simon McConnell
In The Press
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Read what the press have to say about Netwealth
