Our Views on the Markets and the Economy
Articles, investment updates and economic analysis
What are the key macroeconomic and policy issues that savers and investors should focus on when looking at financial markets? Let me highlight the key current issues and then some of the longer-term themes that are likely to come to the fore.
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.
Inflation is easing and UK interest rates are set to fall. That is the message from yesterday’s Bank of England quarterly Monetary Policy Report (MPR) and press conference. The conference followed the outcome of the latest Monetary Policy Committee (MPC) meeting at which the vote was 7-2 to leave policy rates on hold at 5.25%. Two members, Ramsden and Dhingra, voted to cut immediately.
It’s not uncommon for organisations to allow families to club together to earn generous discounts: consider the Network Railcard, National Trust family memberships and the multi-user options on Netflix. Yet those who want to save or invest as a family have been poorly served by the traditional wealth management industry.
What lies ahead in May? Let me highlight three areas. First, in recent weeks the weakness of the yen has become a central focus for financial markets. The yen at one stage weakened through ¥:$ 160 (160 yen to the US dollar), prompting intervention by the Bank of Japan (BOJ). Last Monday it is conjectured that BOJ intervention totalled ¥5.5 trillion of purchases.
In a recent webinar we focused on how investors can maximise their wealth for the 2024-25 tax year. There are many permutations to consider. We highlight some of them here to help you make better financial decisions this year and make a difference to your longer-term outcome.
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.
Team Contributors
Gerard Lyons
Charlotte Ransom
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How can I protect my retirement savings and should I be using a trust?
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“I’m worried about the fees on my £600k pension pot. Are some costs being hidden?”
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Wealth management uncovered – clients will be the winners and it’s long overdue
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“I’ve inherited £240k. Should I ask a financial adviser what to do with it?”
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“I’ve just got divorced – how should I invest my £460,000 settlement lump sum?”
Thomas Salter
Iain Barnes
Simon McConnell
In The Press
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Read what the press have to say about Netwealth
