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"Don't panic Mr. Mainwaring."

Posted by siteadmin on Thursday 24th of May 2018.


"DON'T PANIC, MR MAINWARING"

It has now become common practice that clients receive a 6 monthly valuation from their investment or pension company.   These valuations are usually made up to the end of the financial year, 5th April. 

We have received a number of calls and emails from clients expressing their concern over the recent valuations they have received from their investment or pension companies. They are showing a fall since the previous valuations.

Unfortunately, the 5th April valuations this year came out just after all the world stock markets had recently fallen to a low point.  This fall in the world markets resulted from the concern that markets would be seriously affected from the talk of a possible trade war between the US and China.  This concern came about because Mr Trump stated that he was planning to place trade tariffs on Chinese products to the US as a means of solving the trade imbalance between the two countries. 

The outcome:  China has agreed to buy more American products;   trade tariffs will be minimal;   no trade war resulting;  markets breathe a sigh of relief and as a result start to climb again.  My personal view, "take note of what he does, not what he says"

The effect on world markets is clearly illustrated by the chart below showing the performance of the main UK stock market index FTSE100 which has gone up by more than 8% in value since the 5th April.  

I hope this goes some way to explaining the situation and allay any concerns that you may have from your latest valuation.  You can rest assured that the value of your investments or pension has gone up since 5th April.

FTSE100
Source: http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/summary/summary-indices-chart.html?index=UKX

 FTSE100April5th2018.png

 

 

 

 

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