pensions – Severn Valley Business Group
 

Tag: pensions

Equity Insight

| Comments Off on Equity Insight

Not only are we having to contend with the ever present and seemingly endless Brexit negotiations but we are now having to suffer lurid press headlines in regard to vast hordes of politicians who can’t seem to keep their hands under control.  No doubt we shall hear more about the do’s and don’ts from Clive and Caroline and possibly what are the consequences from Chris!

We have today received notification from the Monetary Policy Committee of the Bank of England that interest rates have risen by 0.25% to 0.5%.  For some this is historic as not only will it be the first time that rate have risen in over 10 years but also possibly the first time ever that they have doubled in a single day!

Given all these changes I thought that you should have a read of the latest Equity Insight – Issue 660.  There are some views on what is happening to the markets but also some thoughts on how business is reacting and positioning itself for a number of potential outcomes.

Feel free to contact me if there is anything of interest in the Equity Insight that you might like to discuss on either my mobile 07711 710 628 or my email address Rupert.harvey@redmayne.co.uk.

Share

Should we fear October

| Comments Off on Should we fear October

Should we fear October?

11 October 2017

October is considered by many to be the scariest month. This year, not only do we have Friday the 13th to contend with, in addition to the traditional Halloween mischief night and trick or treating, but seasoned investors may know that October is historically one of the most volatile months for stocks.

Additionally, for those of you who are superstitious, 2017 may bring extra dread if you believe the ‘curse of the number 7’. This relates to the theory that the month of October suffers especially significant drops, in particular, in years ending in the number 7.

The most well-known cases of this phenomenon were in 2007, 1997 and, of course the largest of drops, known as ‘Black Monday’, in 1987.

On 19th October it will be 30 years exactly since ‘Black Monday’, when the FTSE 100 index dropped by 12.2 per cent and the Dow Jones plummeted by almost 22 per cent in just one day, falling by 508 points. This still stands on record as the biggest single-day percentage decline.

However, despite the dramatic falls, the crash of 1987 was relatively short lived. During the next two trading days, the Dow gained nearly 300 points and the market actually finished the year above where it started.

The stock market is resilient and has recovered from difficult times. When considering the month it is worth remembering that past performance is not an indicator of future results. October is actually one of only 3 months in the year when the FTSE 100 tends to outperform the mid-cap FTSE 250. This could be due to the fact that October signals the end of the weak trading period, starting at the beginning of May, caused by the ‘Sell in May’ effect.

Additionally, on average, markets in October tend to rise in the first fortnight of the month before falling back. The last few days of the month tend to see a rise and the last trading day of the month usually has the best record of any month’s final trading day.

This year could be a positive one for October, as gains in the market have successfully navigated August and September, the worst two-month stretch of the year, based upon historical performance. If this trend continues in October we could see even stronger gains in the market going into 2018.

However, with the threat of a potential rise in interest rates, tightening monetary policy in the US and the conflict between the US and North Korea and other geopolitical factors it may be worth keeping a look out for signs of potential volatility.

Be prepared to react but keep a level head, don’t panic and think about the longer term. Having confidence in your portfolio and holding well-thought-out investments with long-term strategies should help you to stay calm when others may not.

Additionally, if stocks do fall in October, as history suggests, then this could actually present buying opportunities, especially if stocks become attractively valued.

Of course, if you find that you lack the time or opportunity to monitor your portfolio then you may wish to entrust the running of your portfolio to a qualified Investment Manager, obviously I would be only to happy to help out.  Please contact me on 07711 710 628 or Rupert.harvey@redmayne.co.uk.

Please note that investments can fall as well as rise in value and past performance is not an indicator of future results.

Share

Equity Insight

| Comments Off on Equity Insight

We continue to live in volatile times and global equity markets are reflecting this.  We have seen geopolitical tensions rise as North Korea continues to ‘tease’ the Donald and the on-going drama of the Europeans and British negotiators speaking in foreign tongues making the perfect antidote for insomniacs.  Even mother nature is getting a little restless by sending a few ‘gusts’ around the world!

Given all of the above I thought it worthwhile to add another bit of useful information about shares and the rights of shareholders in the this link Equity Insight – Issue 656.  As always feel free to get in touch if there is anything that you might feel inclined to talk about.

Share

Severn Valley Business Group ©2017. All Rights Reserved.

newsletter software
Close
loading...