A local perspective on global issues
Panoramic Wealth’s Gary Jefferies reveals his take on the current world stock markets and their impact on us all…
Gary Jefferies, MD of Panoramic Wealth, boasts decades of experience with major pension and investment providers and now has over 30 years’ of industry experience with his own company.
He established Panoramic Wealth in the early 1990s but, in fact, Gary can trace his family’s roots in finance back to the Second World War.
“We feel we have an affinity and understanding of family-owned business which often creates very different business dynamics,” he states.
“At Panoramic Wealth our main areas of advice centre on all areas of both corporate and personal planning for both Director and Partners firms as well as a variety of trusts including charities.”
Here Gary explains more about his business and its take on the current global stock market and how it impacts us all…
How everyone is directly impacted by world stock markets
For many, the investment world is surrounded in mystique, often avoided at one’s peril. It’s not uncommon for comments such as ‘investing is too risky’ or that it’s even an a ‘form of gambling’ but to keep pace with inflation, investing is in reality; a necessity, otherwise your wealth is going backwards.
A crucial understanding of stocks and shares is demonstrated by history that you need to be prepared to hold the assets for a minimum period of at least five to seven years. People often suggest they can predict equity markets, but in reality, this is not the case.
As the saying goes: ‘It is not timing the market but time in the market’ as this leads to longer term capital appreciation slowly, rather than attempting to pick the individual stocks that will increase in a more volatile way.
Individuals can, to an extent, still disassociate themselves from stock markets as they assume they are not affected by worldwide events. The greatest impact often is in relation to their pension in retirement. They will most likely be invested in a diversified asset base but still affected to market movements. Stock market corrections at the wrong time could have a significant impact on their future income for the rest of their life.
In recent times we have seen a raging bull market – despite some adverse headwinds winds that could de-rail the run. This is highlighted as with FTSE 100 surpassed 8,000 for the first time and Dow Jones Index setting new records reaching over 40,000. The US Index is only 30 stocks but mainly driven by the Magnificent 7 stocks. One of which is Apple which is currently being challenged in the US over possible monopoly issues and Tesla whose domination of the electric car market has stalled.
This is all with a backdrop of crucial elections as well as conflicts and tension worldwide. Some of the most prominent focus points we have this year will be if President Joe Biden fails to be re-elected and greater pressure on schools and higher Inheritance Tax (IHT) with proposed fiscal changes if, as seems likely, Sir Keir Starmer becomes the next UK Prime Minster. This is coupled with conflict in Ukraine, Gaza and mutterings of China invading Thailand have a detrimental impact on the stock market.
So having your assets correctly aligned to your attitude to risk is just a part of the financial planning process.
Downturns in the stock market can not only affect your financial well-being but it can, in turn, have great consequences on your emotions and health.
Taking these factors into account, means the types of conundrums we look to solve for our clients include:
How much is enough?
Can I retire now or a point in the future?
Can I pass monies to my children?
There is seldom an easy answer but for over 30 years, we have been devising plans and strategies to achieve the life goals of our clients. Having said all that, you can’t time the market but our clients will benefit most is ensuring they make the correct decisions at the key moments in life.
www.panoramicwealth.co.uk
