Contact

News & Insights

August Market Review

Despite COVID cases continuing to be a problem, investors’ sentiment remained positive in the US, as economic data continues its strong rebound from the dismal figures reported in the first 2 quarters. Despite the reduction in unemployment benefits, the US registered an increase in retail sales and a sharp rise in existing home sales (+25% month-over-month), supported by (near) record low mortgage rates in the country. In the meantime, further stimulus to the economy are still being discussed, but the early signs of recovery are a welcomed development.

Outside the US spectrum, the FTSE 100 rose by a modest 1.1% in the month, continuing to underperform in 2020. Despite good numbers coming out of the UK, regarding manufacturing and services figures, and a good prospect of a strong recovery in Q3, the country’s main stock index is still lagging in comparison to its peers, and it has become apparent that, unsurprisingly, investors are largely in “wait and see mode” as Brexit becomes closer and closer to its final deadline and there are still many significant topics to be agreed upon with the EU. More recently, there has been increasingly more rumours regarding a “no-deal” Brexit and as these should intensify as we get near the finish line, it shouldn’t come as a surprise to see more volatility coming from the UK, in the coming weeks.

Overall this is how the major stock markets performed in August and year-to-date:

Fefby8J0Wwbibaegkaqwb6Bikdlkraagkaqcajbiaisiube0Jrnnl0Hgsaqbijaefgegyig5Skqaijaeagcqsairilarnca555Db4Egeascqbbyhogiooupeaccqbaiakegckyjqetqmueexqebibaegkaqwb6Bikdlkraagkaqcajbiaisiube0Jrnnl0Hgsaqbijaefgegyig5Skqaijaeagcqsairilarnca555Db4Egeascqbbyhogiooupeaccqbaiakegckyjwp8Hdodv0Djunv4Aaaaasuvork5Cyii= - Blacktower Financial Management Eu

Taking action

Periods of extreme uncertainty are undoubtedly unsettling. Yet if you’ve no immediate need for your spare cash, and some set aside for emergencies, investing for your long-term future may provide a focus. At a time of worldwide turmoil, this could give you some sense of control over your long-term financial future. For clients with existing portfolios, now can be a very good time to review the risk strategy and weighting of the portfolio.

Feel free to contact me directly at any time should you have any questions

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

UK inflation rate falls – Good news?

Blacktower FM - LondonSo, the Spanish inflation rate is currently running at – 0.9%.  Good news you might think, if things are cheaper your money will go further. Conversely, the fall in inflation reported last week in the UK (CPI) of -0.1% does not represent good news.

The vast majority of British ex-pats in Spain rely on their pensions and savings income to get by on.

So why should you care about the rate of inflation in the UK?  It might well be good for people who work there, as wages show some signs of growth but not so good for pensioners.

Read More

2024 Financial Landscape in France: Taxation, Banking & Savings

In 2024, France will experience several financial and regulatory changes, impacting banking, property, and taxation. This overview delves into the upcoming shifts. The iconic Livret A bank account maintains its 3% interest rate for the entire year. More broadly, banking rules, property reporting requirements, and tax brackets are set to evolve. French Pensions and Benefits […]

Read More

Get in touch for more information

To contact us about this or any other news, please complete the form below

Select your country

Please select your country of residence so we can provide you with the most relevant information: