A short tale of investing in 2009 so far.
For many people and organisations, such as businesses and charities, with investments (whether these are pensions, gilts, cash deposits, ISAs or stocks and shares as examples) 2009 has seen a rollercoaster of values and in some cases emotions over the last 12 months.
With the major ‘scalp’ of Lehman Brothers falling a year ago, most investment markets have seen volatility over the last year, with some values being seriously affected. However, this monetary cost does not illustrate the human cost in terms of falling lifestyles and income.
From the depths of early March 2009, when equity values were at their weakest in current times, within 6 months we have seen the FTSE100 close above 5000 points, gold reaching $1,000 dollars and Bank base rates remaining at 0.5% for over 6 consecutive months.
Many have indicated that the resurgence in the markets is due to Quantative Easing, but, dare I say, there also appears to be a renewed confidence in investing. As a note of caution, there remains a concern that we could suffer a ‘mini recession’ (a fall in production and equity markets) within the overall recession that we have all experienced. However, in this computer driven modern world that we live in, the pace of falls and recoveries seems to be far quicker than it has been in previous eras and this can surely be attributed to the speed, breadth and diversity of information that we all receive daily through our computers, televisions and radios. The speed of the delivery of information certainly allows investors the opportunity of making faster decisions and implementing their reactions.
Thinking forward, I am sure that we will see some hick ups in investment progress in the shorter term, although the ride may not be as bumpy as it has been in the last 12 months. This can only help with investor confidence. However, the prospects for investment look far better than they did 12 months ago. With the advantages of increased ISA allowances (£10,200 for the over 50’s from 06th October, available to all eligible investors from 06th April 2010) and the valuable Capital Gains Tax allowance (£10,100 in 2009/2010) it is well worth reviewing your investment strategy to ensure that you are aligned to your investment objectives for the future, whether this be for income or capital growth, or both.
For many people and organisations, such as businesses and charities, with investments (whether these are pensions, gilts, cash deposits, ISAs or stocks and shares as examples) 2009 has seen a rollercoaster of values and in some cases emotions over the last 12 months.
With the major ‘scalp’ of Lehman Brothers falling a year ago, most investment markets have seen volatility over the last year, with some values being seriously affected. However, this monetary cost does not illustrate the human cost in terms of falling lifestyles and income.
From the depths of early March 2009, when equity values were at their weakest in current times, within 6 months we have seen the FTSE100 close above 5000 points, gold reaching $1,000 dollars and Bank base rates remaining at 0.5% for over 6 consecutive months.
Many have indicated that the resurgence in the markets is due to Quantative Easing, but, dare I say, there also appears to be a renewed confidence in investing. As a note of caution, there remains a concern that we could suffer a ‘mini recession’ (a fall in production and equity markets) within the overall recession that we have all experienced. However, in this computer driven modern world that we live in, the pace of falls and recoveries seems to be far quicker than it has been in previous eras and this can surely be attributed to the speed, breadth and diversity of information that we all receive daily through our computers, televisions and radios. The speed of the delivery of information certainly allows investors the opportunity of making faster decisions and implementing their reactions.
Thinking forward, I am sure that we will see some hick ups in investment progress in the shorter term, although the ride may not be as bumpy as it has been in the last 12 months. This can only help with investor confidence. However, the prospects for investment look far better than they did 12 months ago. With the advantages of increased ISA allowances (£10,200 for the over 50’s from 06th October, available to all eligible investors from 06th April 2010) and the valuable Capital Gains Tax allowance (£10,100 in 2009/2010) it is well worth reviewing your investment strategy to ensure that you are aligned to your investment objectives for the future, whether this be for income or capital growth, or both.
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.
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