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What’s affecting your investments? May 2018

Alex Neilson and Zoe Bancroft discuss the external political and economic factors impacting your investments

Topic: Investing

This month we have changed the format of our monthly market commentary. You can now catch-up on what’s happening in the economy in our ’60 Second Market Update’ and then hear more about how it’s impacting your investments in our portfolio analysis discussion, featuring Investment Managers Alex Neilson and Zoe Bancroft.

Video Transcription

The Bank of England recently kept interest rates at 0.5% and lowered growth expectations for the UK. Bad news for savers, good news for investors and mortgage holders - but only in the short term.

The government blames the Beast from the East which kept shoppers at home, but the Bank of England thinks underlying growth is still more resilient than the headlines suggests so we still expect a rate rise before the end of the year.

The housing market looks like it’s finally slowing down with last week’s Halifax house price index reporting a fall of 3.1% in April: the largest monthly drop since 2010. First-time buyers may now be torn between waiting to see if prices fall further, or buying now before the cost of borrowing increases.

And finally… Donald Trump has pulled America out from the Iran nuclear deal and restored sanctions - despite attempts made by European leaders to dissuade him. The price of oil spiked in reaction, meaning we all are likely to feel the pinch at the pump.

So with these political shifts taking place across the world, we will be keeping a close eye on developments and believe now is not the time to take major risk. We have been actively reducing our exposure to stocks and shares. However we are positive on the long term outlook for markets.

I sat down with investment manager Zoë Bancroft to discuss how it’s affecting your portfolio.

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