Following a weekend of sporting success (may the success continue; hopefully winning FIFA WC), beautiful weather and up to midnight, last night, some cabinet accord in relation to the Brexit battle, a result was delivered. David Davis’ resignation as Brexit Secretary last night has now returned the Politics of Brexit to being less stable once more, along with Boris Johnson’s resignation earlier today.
Politics is certainly producing increased volatility, in the UK, Europe and USA, Trump and Trade continues an uncertain path.
FTSE 100 7648.56 + 0.41% @ 11.52am 09/07/18
FTAS 4205.44 + 0.43% @ 11.52am
Dow Jones 24456.48 + 0.41%
US Tariffs
Last Thursday at midnight the US imposed tariffs on $34bn of Chinese imports. President Trump went a step further saying that his administration could ultimately target over $500bn worth of Chinese goods. Beijing said it would retaliate, pointing out that the US had ‘initiated the largest-scale trade war in history’. Clearly investment opinions are swaying, based upon the view of the Trade Tariffs – (which change often based upon Trumps Tweets!) Some commentators say we are seeing a Trade War happening, some say we are witnessing Trade Bullying. Whichever it is, markets are unsettled by the issue.
Investment Management and Global Politics
It is likely that a well-constructed investments portfolio, accessing a range of quality assets, reviewing and rebalancing regularly to ensure that the quality and the construction of the asset allocation remains ‘on track’ is the best process against a back drop of uncertain political outcomes that may create an impact to global economics, with subsequent investment market upset.
Financial prudence is likely to increase, if the economy tightens, although there is no certainty in relation to the time scale of actual interest rate ‘normalisation’, so ‘savers’ may continue to suffer pain, against inflation, with investors supported by the low cost of borrowing for some time to come.
Normalisation will develop over time, hopefully well managed by Central Bank so the economy adjusts appropriately, although reduced liquidity is likely to reduce growth expectations, where good management of financial affairs will be required by individual investors and companies alike. Balancing the risks of markets and tailoring to ones ‘needs’ are extremely important, where prudence will require diversity, quality ‘goal setting’ and staying with the investment time horizons. Investors will be wise not to be over exposed to a sector, provider or fund. In an interview earlier on Bloomberg, ECB Executive Board member Benoit Coeure stated that it would be wise for individuals and corporations to ‘hope for the best and prepare for the worst’ in relation to the Brexit outcome.
Sell Signals
We attach a link to an article that appeared in Professional Adviser last Friday; Five Key Market ‘sell’ signals to monitor. An interesting read for Professional Advisers and individuals alike
Best Price Financial Services – Product Expansion
We firmly believe that all consumers of financial products require a quality financial plan; from the purchase of transactional products to more complex investment products, which is why we are developing a full suite of insurance and investment product solutions at the ‘best price’. In line with backdrop of a need for prudence.
Bestprice is a fully authorised and regulated Independent Financial Advisory business that enables the consumer to purchase a number of products via our website on a non-advised basis (subject to product provider control) along with promoting Investment and Insurance solutions requiring ‘advice’ (advice is clearly stated where required on our site and advice is only provided to the client, once the ‘know your customer’ process has been undertaken, taking care to make sure the products purchased are suitable).
Best Price Financial Services rebates commission in respect of insurance in order to improve the consumers’ pricing terms and discounts fees in relation to Investments and Pension products in order to deliver quality products to all UK consumers in an accessible, cost efficient and understandable way, so we are at the ‘bestprice’ against comparable investment and insurance solutions, delivering the best value and outcomes.
We want to be your ‘one stop financial shop’ for all your financial needs, be it simplistic or complex in nature.
Simple products will increasingly be purchased online, where complex financial products and the adaption to an individual need are best served taking advice, although we respect that experienced consumers, who take the time required (and have the confidence) to understand financial products, want to self-select, without the protection an Independent Financial Adviser provides, within a regulatory structure, with regulatory responsibility of the advice provided. Some customers do not seek or want the benefit of Regulatory Protection in relation to ‘Advice’.
Best Price FS will shortly be enabling a broad range of investment and insurance products to be purchased via our site which every person requires, from Home/Contents, Car, Van, Motorcycle, Travel and Pet Insurance at the best price with leading investment and insurance providers.
In our communication to consumers we are doing our very best to make financial communication simple – keeping communication plain and simple. (not always easy in our ‘jargonated’ sector!)
By way of example we are developing a number of case studies of a well-constructed financial plan, highlighting how a plan is formed, in relation to risk, objective, term and end result – i.e. the products purchased. (remembering that past performances are not a guide to future performance).
By way of an Example; Savings/Deposit Accounts
All investment planning must consider short term needs, where the arrangements held must be liquid and accessible, so 6-12 months budgetary requirements can be met, along with surplus for contingency.
We all know that the rate of return on cash – both current account and deposit accounts have been generally pitiful since the credit crisis, with interest rates being ravaged for savers; in real return terms, which has forced some savers to move to investing – which has moved the individuals concerned to relatively uncomfortable position in respect of ‘Risk’ – although the increase risk taken may have ‘paid off’ to this point, as investment markets have surprised on the ‘upside’. But; what has been the increased risk taken to gather the return increase?
We recommend that all current account holders shop around for the best Banking service applicable to their needs, check out – U-Switch, which provides a lot of useful information in relation to Banking accounts, www.uswitch.com .
For Deposit based money the news that National Savings and Investments (NS& I), the government backed savings bank has cut the maximum deposit limit on 2 of its most popular bonds from £1 million to just £10,000.00 is not good news for savers who are looking to obtain reasonable rates of return on Savings/Deposit Accounts.
The move leaves people with large amounts of cash more reliant on the Financial Services Compensation Scheme (FSCS) which caps protection at £85,000 per institution.
Many of our clients are concerned about the lack of ‘interest’ available for deposits, eroding capital against inflation.
We have therefore looked to highlight products that can assist our clients with improved interest rates, while maintaining the level of security/financial protection required by our clients.
A potential solution; for 35 day to 24 month deposit money
Current Account money must always be instantly accessible but for surplus money, able to be held for, from 35 days to a term of 24 months with FSCS protection up to £85,000 interest rates are available at 1.21%, moving to 2.02% for a 24 month term (available to individuals and corporations, charities, Trusts and Power of Attorney clients). We will shortly enable these rates. These terms are net rates, although subject to tax, if not held in a tax-free wrapper.
Take a look at the rates you are getting from your Bank/Building Society, so a like-for-like comparison of interest rates can be made for your Savings/Deposit account needs. I am sure, once you have done the study, you will appreciate the value of ‘our research’. We are constantly looking to add value to our client’s financial position, where we are looking to highlight the value of “cash management”, so our clients put their 35 day to 24-month money to work a little harder, with FSCS protection. We are generally seeing that locking money away for 35 days produces 10x plus the result of keeping money in current Accounts.
We are doing our best to provide clarity to clients in relation to our pricing benefit and the value of our service to consumers in relation to both Advised and Non-Advised services. We plan to disturb some of the larger brands on both cost and value…… are you watching this space?
Watch this space for an update on the many new products available via our website.
As always, if you have an ‘advice’ need, simply Contact us.