NEWS
Artificial Intelligence has moved from novelty to necessity in what feels like months. Markets have reacted accordingly. Some technology shares have surged on the promise of AI, while others have fallen sharply on fears that AI could undermine existing business models. Like many investors, I’ve been trying to get my head around what is actually happening — and why the stakes suddenly feel so high.
Financial markets were primed for sharp, immediate tax rises. Commentators warned of fiscal tightening. Yet when the Chancellor delivered the measures, the initial reaction was muted. Markets barely moved. The plaster came off—and it didn’t hurt.
If you watch or read the news at the moment, it’s easy to think the world is falling apart. Political tensions, elections, and talk of global conflict seem to dominate every headline. It can all feel a bit bleak – and when you’re also hearing that some professional investors are ‘turning cautious,’ it’s natural to wonder whether it’s time to be worried. Yet, strangely, the investment markets don’t appear to agree with the headlines.
Plenty of speculation about the taxes that the Government might introduce – and there is lots of choice but let’s examine the potential for a change to the tax free cash sum that clients normally access on retirement.
Equity markets rise over-time but they do not do so in a straight line. Volatility – although difficult to stomach at the time – is par for the course. According to Duncan Lamont, head of strategic research at Schroders, the stock market tends to fall by 20% once every four years and by 10% at some point during most years.
President Donald Trump announced sweeping tariffs that will reshape trade relations with the United States. The new tariff regime is more severe than expected, and extraordinary both in terms of scale and how they were calculated.
As investors we do need to seek out opportunities when the exuberance or caution of markets is exaggerated. It is tough to make the right call consistently but at times there are opportunities that in hindsight were ‘obvious’ but at the time seem to present too much risk to commit the capital.
It’s a new tax year, and there are some changes to take on board. Jeremy Hunt’s 2024 Spring Budget contained some crowd-pleasers with an eye to the General Election later this year. But what’s going to affect you?
Investing is very much worthwhile but this statement is always subject to the usual industry caveats (see footnote) and we need to acknowledge the maxim of risk vs reward, this really is relevant.
It doesn’t take much searching to find short term deposit rates paying 5% or more. There have been lots of knock on effects of the lower returns from deposits and borrowers have benefitted from ‘cheap’ money.
You’ve got to be in it to win it. The phrase is never more true than when it comes to investing in the markets. But when they’re volatile or stagnant it can be tough to hold on.
Woosh! Who’s enjoyed watching interest rates on savings rocket? Of course, if you’re a mortgage-payer these are very challenging times.
Following the weekend escalation involving US – Israeli strikes on Iran and Iran’s subsequent response, markets have – so far – reacted in a relatively orderly way. The immediate transmission mechanism is energy, because the Strait of Hormuz is a critical chokepoint for global oil and gas flows.
Artificial Intelligence has moved from novelty to necessity in what feels like months. Markets have reacted accordingly. Some technology shares have surged on the promise of AI, while others have fallen sharply on fears that AI could undermine existing business models. Like many investors, I’ve been trying to get my head around what is actually happening — and why the stakes suddenly feel so high.
Financial markets were primed for sharp, immediate tax rises. Commentators warned of fiscal tightening. Yet when the Chancellor delivered the measures, the initial reaction was muted. Markets barely moved. The plaster came off—and it didn’t hurt.
In the weeks leading up to the UK Budget, the industry has struggled to read the signs from the Treasury as to what was most likely to happen in the Autumn Statement and what new taxes were to be introduced – we just knew that tax would rise.