Paul Davis is an Appointed Representative of Financial Ltd, which is authorised and regulated by the Financial Services Authority. Copyright Paul Davis 2010
News and Views
Up to date comment and opinion on the financial world.
Citywire Personal Investor - this is an independent news and opinions site covering fund management, saving, and the economy generally.
BBC Business Page - news and opinion about the world of business and finance from the BBC's reporters.
Please note that no investment decisions should be taken based upon the content of this site. Always take full individual advice first. Regulations governing tax rates and investments may change in the future.
No responsibility is accepted for the accuracy or content of external websites. The information contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK
Monthly Markets Update
1 mnth 3 mnths 6 mnths 1 yr 3 yrs 5 yrs FTSE All Share -6.9 -9.3 -7.9 7.3 8.9 11.2 S&P 500 (USA) -5.7 -9.4 -8.2 16.2 5 -6.5 UK Gilts 1.5 4.2 7.8 3.7 24.5 34.3 UK Corporate Bonds -1.47 -0.38 3.53 0.19 15.18 12.8 RPI 0 -0.2 1.5 4.5 8.1 17.8
Source trustnet/ishares Markit iBoxx 01/09/2011
You can see from the above that equity markets, i.e. company shares, have tumbled recently. As per the many news articles over the past month, this is due to a number of factors, such as concern over global economic growth, and government debt in the West. However, other investment markets have performed better recently, especially Bond markets. What steps can you take in the current market? Some potential options to consider are;
• Avoid putting all your eggs in one basket – Diversify across different markets and asset classes.
• Consider moving any short term investments out of equity markets using fund switches. For example, any investments or personal pensions you might be looking to surrender in the next few months.
• Ensure that the balance of cash savings and investments you hold is suitable for your personal situation and needs.
• For long term investments, consider if the current equity market weakness is a buying opportunity, depending of course on your personal attitude to risk.
• Don’t’ panic! If you have a considered, long term investment plan and your Portfolio is already well diversified, it is probably best to stick with it.
If you would like to look at your Portfolio in the light of recent market developments, please let me know.