As you will no doubt be aware, stock markets have been extremely jittery in recent days, due to the political situation on both sides of the Atlantic. In the UK, the FTSE 100 has bounced back to some degree after a heavy falls, however, with so much at stake regarding the UK’s future trading relationship with Europe, it could be another rollercoaster period ahead for the markets.
The Brexit deal is currently being debated in parliament, with a ‘final’ vote on whether to accept Theresa May’s deal expected for some time in January. Most commentators predict her proposal is almost certain to be voted down, but what happens next is unknown. If that scenario becomes a reality, the likely outcome would see some sort of delay, or extension, to the UK’s departure date while parliament tries to sort things out.
Elsewhere, Donald Trump’s Twitter feed has exploded yet again, this time regarding progress on a trade deal with Bejing – as well as simultaneously trying to arrest the most powerful woman in China. He has since declared himself the “Tariff Man” amid renewed threats to escalate the trade war.
The combination of events in London and Washington mean that already jittery stockmarkets collectively panicked, with some feeling the situation could have been even worse on Wall Street had markets not closed for the funeral of President Bush.
The Financial Times reports today that; “Investors have contended with Brexit headwinds buffeting sterling and domestic-facing UK stocks since the 2016 referendum, but now rising interest rates and the end of easy money are also whistling through global markets.”
Here at The Financial Planning Group, experience shows us that the world’s global stockmarkets go up and down depending on a myriad of factors. It is fair to say that the market itself is unemotional… but of course individual private investors are not.
In order to be a successful long-term investor, a long-term horizon and plan is required, although this can be hard to remember when you are being assaulted by noise from the media. Indeed, it is times like these when a professional financial adviser’s value comes to the fore, and it is important that we help refocus our clients in understanding their goals and continue building a plan to help achieve them. Equally, sticking to that plan, through both good and bad markets, is vital.
If you have any concerns about how the current economic situation, and how it impacts your investments, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.