Recently we have seen quite dramatic steps in the Budget and continued positive statistics – both offer great prospects for the UK economy and investors.
As outlined in previous articles and updates the Budget was particularly encouraging for savers and investors. As well as tax savings, everyone will have greater access to their pension savings too. This is good for two reasons – it encourages people to save and also allows the economy to benefit from savers as they release capital.
Alongside the Budget changes, there has also been a stream of positive news regarding GDP, reductions in the number of unemployed people. Furthermore there have been several positive endorsements from areas such as the International Monetary Fund (IMF).
The question is then, where does this leave us?
It means that in the UK – the economy, various companies and investors can look ahead to a year of positive steady growth which shows no sign of a dramatic fall.
The main risk to this positive outlook is interest rates. Throughout the UK and across the EU rates are very low but likely to change. As these increase, it could have a dramatic effect on the huge debt mountain that every country is carrying. It could also influence exchange rates and money spent on the high street.
However the potential risks of interest rate changes can be overcome by using a well-constructed and diversified investment portfolio, which we always encourage our clients to hold.
Platinum encourage a greater weighting towards equities and commercial property. Within fixed interest we still favour corporate bonds over sovereign debt, such as gilts.
In line with this we have been ‘tweaking’ clients’ portfolios to ensure a stronger position and benefit from the positive economy.
As always, we encourage you to contact us about any financial matter – even if you simply want to discuss your pensions or investments further.
Equally do not hesitate to get in touch with Platinum if you want to discuss how the Budget changes affect you.