As we approach the summer holiday season, it is worth reflecting on the past few months to see if the future is overcast or full of sunshine.
Throughout the past quarter financial and economic news has been has been dominated by Interest Rates.
In a clear demonstration of how different the UK economy is compared to our European colleagues, we saw the relevant heads of banking giving totally different announcements.
The European Central Bank cut interest rates to a record 0.15% for savers. At the same time the rate of interest paid to national banks holding monies on deposit was cut to less than zero; essentially charging the European banks for leaving their monies on deposit and not helping the economy. Both measures could be considered a desperate attempt to kick start the Eurozone economy.
In contrast Mark Carney, as head of the Bank of England, gave his first indications that he envisages interest rates rising as the UK economy continues to move forward and reinforce its recovery.
What does this mean for investors?
The majority of our clients are UK based and have a large holding of equities as well as large amount of other Sterling denominated assets. The recent news is positive for these clients.
The UK and it’s sterling currency has re-asserted itself as a secure home for investors, which means companies can plan ahead. Accordingly the relevant stock markets have enjoyed a period of stability and low volatility whilst values continue to climb steadily.
Combining this news with the recent legislative changes announced in the budget certainly gives us an optimistic Sunny outlook.
We are continuing to catch up with clients and help them take advantage of the new rules and outlook.
As always, we encourage you to contact us about any financial matter – even if you simply want to discuss your pensions or investments further.
We are here to help.