The sooner the Conservative leadership race is concluded, the better.
In the current economic climate, the last thing the UK needs is a caretaker Prime Minister managing the shop, and with no authority to take decisions on the pressing issues of the day, most notably the continuing cost of living and energy crisis.
We now know that the new PM will not take office until after September 5th – seven weeks of further delay UK consumers and businesses can ill afford.
In the United States, there is always a lot of emphasis placed on the ‘First 100 Days’ of a new President’s term in office, but whoever the new PM is in the UK will also have to hit the ground running and ensure that a robust economic plan is ready to be implemented as quickly as possible.
This may even necessitate an emergency Budget, sooner than the planned Budget scheduled for November.
Looking at the wider global picture, since my last newsletter, the markets have largely stabilised. We must remain watchful regarding inflationary pressures, but I am hopeful that we are nearing the peak globally. There also continue to be supply issues which have not been fully resolved.
The sell-off of pretty much anything other than so-called ‘old school’ stocks such as utilities and banks has ended and there is now a more balanced economic picture.
Interestingly, the S&P 500 Index in the United States has just endured its worst six months on record, but a closer look at its performance over the last 12 months shows a 3% uplift – something most investors would be comfortable with.
So, while there is reason for cautious optimism, the continuing uncertainties in the UK and worldwide reinforce the importance of having a long-term, well-balanced and, crucially, diversified portfolio, something that is integral to the advice and services provided to our clients.
Best Wishes to Laura
We would like to take this opportunity to send our best wishes to our paraplanner colleague Laura Rees who is temporarily leaving us to have a baby.
We are also delighted that our new administrator Chris Archer is settling in well and getting to know our clients.
Finally, as we bask in a rare UK heatwave, on behalf of everyone at Phillip Bates & Co Financial Services, I would like to wish you all a lovely summer.