Hello to all our clients and their families,
Over the years, we have experienced a few fiscal setbacks, corrections, downturns, crashes, bull markets, bear markets, recessions, and other negative economic phenomena, and all we can say is that each one is different, but most are global.
Even if our political leadership seems intent upon shooting itself (repeatedly) in the (same) foot, the markets will sort asset valuations out, but the Government needs to take a firm grip on inflation.
A year ago, it would have seemed inconceivable that inflation would have been about to reintroduce itself to our lexicon and it appears that world leaders weren’t prepared to believe it was true either, but with higher mortgage rates, a cost-of-living crisis, the threat of falling house prices and ongoing supply-side economic difficulties, there’s a lot that needs to be addressed.
Our Traditional and Kinder World investment portfolios are built to reflect investor risk tolerance (you may recall completing the FinaMetrica Risk Profiling test) and so should weather most economic fluctuations. This particular downturn is affecting all asset types, though.
Our advice in the current situation is to "hold", not to sell, but if you have any questions on this approach or its impact on your portfolio, then do email or call me.
On a more positive note, inside you’ll find a very uplifting article by Lawrence and Lorna Baker who embraced their retirement by sailing around the UK, as well as my own adventures cycling in the Italian Dolomites after a 2-year delay due to Covid.
So, get out there and realise your dreams!
Enjoy the autumn!
Nick Miles DipPFS
Director