Market Bulletin

The Market Bulletin looks to discuss some of the key financial and economic issues influencing financial markets and how these may impact on our clients.

15 August 2011

Huge gyrations in global stock markets dominated the financial headlines last week as sentiment swung wildly in response to growing doubts over the global economy and policymaker’s efforts to quell the turmoil. A sense of calm has subsequently returned, partly driven by bargain hunters who have helped push all market indices sharply higher over the last week. Interestingly, company directors were also seen to be active buyers of their own shares with buys/sells reflecting levels last seen at the market low points of March 2009. There are undoubtedly opportunities for longer term investors at current market values and it is comforting to see company insiders (who intimately understand their businesses and future prospects) having the confidence to spend their own personal capital buying shares.

This week will see a range of significant economic data being published which will have relevance for investors as they look to judge the health of the UK economy and make informed decisions about the management of their finances. Tomorrow, we will see July’s inflation figures with some analysts expecting RPI at 5%. The Bank of England’s Monetary Policy Committee issues its latest meeting minutes on Wednesday which will reiterate that UK interest rates are now likely to remain at current levels probably well into 2013. Finally, at the end of the week we will see confirmation of whether the Government has hit its targets for the budget deficit reduction. These are all individually, market moving events. When they are overlaid on top of significant Eurozone uncertainty (including a highly significant meeting between Angela Merkel and Nicolas Sarkozy tomorrow) we are likely to see continued, ongoing volatility which may well throw up some more buying opportunities for patient investors.

We mentioned recently that there had been a number of changes to the fund manager range at St James’s Place. Specifically, the level of funds managed by THSP has been sharply reduced following a period of muted investment returns. A new global equity approach (based on the core/satellite model) has been implemented, supported by new managers based in New York, Washington and London. Full details will be posted to relevant clients shortly direct from St James’s Place.

Should you wish to discuss any aspect of the above, please do not hesitate to contact us or visit our website http://www.wissenbach.co.uk

Holistic financial services and strategies to high net worth individuals centred around finding and achieving their magic number, including advice on tax mitigation, trusts, wills, investments and business exit strategies.

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This release was published on openPR.