The leaves on the trees have not been the only things to fall over the past month.
In just a matter of weeks, since the last edition of IFA Magazine, we’ve seen the fall of another Prime Minister, Chancellor and various cabinet ministers.
UK house prices too have started to fall. The first monthly decline in house prices since July 2021, with a 0.9% fall month-on-month, was announced by Nationwide in their October House Price Index report, as demand from buyers fell off a cliff as a result of all the political and economic uncertainty and pressures on the mortgage market.
And then there’s the fall from grace of many of the tech darlings of the US stock market. In recent weeks, the likes of Amazon, Alphabet, Microsoft and Meta have shown that they are not immune to the effects of economic slowdown, with corresponding hits to their share prices. Twitter, of course, has also grabbed the headlines but for different reasons, as new owner, Elon Musk, flexes his muscles as chief twit.
Gilts grab the headlines
However, in an almost unprecedented moment in the spotlight, it’s been the fall in gilt prices which has really taken centre stage. Not only have gilts dominated national news headlines but also spooked large pension funds, investor confidence and market prices too, following Chancellor Kwarteng’s disastrous mini-budget at the end of September.
The fall of Trussonomics has, thankfully, restored some much-needed stability in the gilt market. At the time of writing, 10 year gilt yields have fallen back to 3.5%, a full 1% lower than the peak of just a few weeks ago.
For now, we must all await the latest Chancellor – Jeremy Hunt MP’s – Autumn Statement which is due on 17th November. However, his dire warnings of ‘difficult decisions ahead’ mean that fears of recession and austerity are back with avengeance. There are tough times ahead for sure.
So, to say that a lot has changed since the last edition of IFA Magazine, just a month ago, seems rather an understatement.
The role of advice
Financial advisers and planners are well acquainted with dealing with change and planning for uncertainty. ECB, US and UK base rates have all risen at the highest rates for decades. The cost of living crisis is really impacting clients’ budgets too. For now, for your clients, the value of having a sound financial planning strategy in place and the reassurance of a trusted financial planner to focus on long term goals cannot be overstated.
Your IFA Magazine – talking the talk
As well as turning the pages on this month’s IFA Magazine, don’t forget that there is plenty more great content for you on here. IFA Talk, our weekly podcast, is also proving to be extremely popular so if you’ve not tuned in yet, please do have a listen. At around 20 minutes run time, Bex and I have some great guests and each episode is different. I hope you’ll like it!
And don’t forget MPS
In October, the latest IFA Magazine MPS Report, researched and written by compliance specialist, Tony Catt, has been published and is already proving popular. You can get your copy here.
Editor, IFA Magazine