Panic equity selling or panic raising of precautionary cash?

Following yesterday’s unprecedented one day declines in global stock markets, there is a recovery under way today. Instead of the past day’s written update note we are today sending you a link to a short video (5 minutes) in which Lothar Mentel, Tatton’s Chief Investment Officer, briefly lays out what caused the severity of this market crash and why this ‘dash for cash’ can be seen as capital markets’ version of the panic toilet paper buying we have seen over recent days in the shops.

Click the Link below

What advisers are telling clients in latest market turmoil

The sharp falls engulfing global equity markets in recent days may have caused concern among investors, leaving advisers to contain the panic.

The FTSE 100 was down 7.7% yesterday, but opened 1 per cent higher this morning, while the FTSE 250 was down 18.7 per cent in the last month.

The Dow Jones Index of US shares is down 18.5 per cent in the past month, and the Nikkei index in Japan is down 16.9 per cent over the past month.

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Alan Steel, chairman of Alan Steel Asset Management in Linlithgow, said he reassures his clients not to panic.

He said: “Having been through four [market crashes] since 1973, that’s why we built your portfolios with [defensive as well as aggressive assets] to protect you. And remind them that when utter and senseless panic is in the air, not to join in.

“The worst investment decisions, buying and selling are made when the inmates are temporarily running the asylum. Sit tight, and if you’ve got spare cash, drip it in monthly.”  

Similarly Philip Milton, who acts as both a financial adviser and a discretionary fund manager at PJ Milton and Co in Devon, has emailed all of his clients, asking them if they can defer withdrawing money “to ensure they do not take funds at a dangerous moment”.

He also wrote: “If you do force sales in the face of a market which is not enthusiastic to buy from you, you will sell holdings at lower prices than they should be valued and which you deserve. 

“Sometimes even the sale of a stock can be enough to push prices down more, as the good and the bad face the same reluctance from buyers to do much other than sit on hands. 

“Market makers are happier pushing prices lower even if in some holdings there is little activity.”

But Francis Klonowski, who runs advice firm Klonowski and Co in Leeds, said none of his clients have been in touch with him regarding the current market falls.

He added: “I don’t know if that is a function of what we always say to people, which is that we invest for the long-term. And to be honest, if someone did have any questions about the short-term I am not sure what I could tell them.

“I think if someone wants to exit the market because of current events, they probably shouldn’t have been investing anyway. One client came for a meeting this morning, and I showed him a graph showing the performance of his portfolio  since December, and the client just shrugged, he knew what these movements are.” 

For me, I would reinforce all that’s been said above. Until you actually encash something, you have lost out except on paper. Experience tells me that markets will bounce back. When I don’t know but I am sure they will.

Remember that in 1972, the FTSE 100 stood at around 460 and by 1974 it was around 340! As I write, the market stood at 6200.

Nevertheless, the last few days have been rather bruising. In peak to trough terms the sell off in the equity markets has not been all that impressive by historical measures but the speed and ferocity certainly has.

It is my belief that this has magnified the panic because the market doesn’t like uncertainty, and we have that by the bucket load right now.

Using ISAs to fund your retirement

Could ISAs overtake pensions as the UK’s retirement savings vehicle of choice? That’s the question posed by the Financial Times over the weekend. 

When they were launched back in 1999, few expected them to become a serious part of retirement portfolios, but times have changed over the last 20 years. 

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However, according to the article, as concerns over pensions and tax grows, ISAs become ever more popular. The 2017-18 tax year saw the £20,000 ISA allowance used in full by 61% of adult ISA investors earning more than £150,000, according to data from HM Revenue & Customs. 

That same group will have seen their pensions savings options whittled down by the tapered annual allowance, potentially restricting pensions savings to as little as £10,000 per year. 

7 Marketing Faux Pas, And How To Avoid Them

I was reading an interesting article in Forbes the other day and thought you might enjoy the concepts imparted.  This is the seventh week’s article.

Every business has to market their products and services and the way you market your business can mean the difference between failure and success. If done right, you can increase revenue, attract new customers, and retain your current customers. If done wrong, you’ll be left screaming, “Ugh, I’ve made a huge mistake!” and trying to pick up all the pieces.

The article in Forbes outlined what marketing mistakes you need to avoid at all costs and I thought you might be interested to read their comments. If you want to avoid some of the biggest marketing blunders of all time, you have to know what they are and how to steer clear of them. Here are seven marketing faux pas you need to watch out for in your business. 

I reproduce them all seven over a 7 week period, so keep coming back to see the next one.

7. Ignoring Your Competition

Sure, you might not like them. In fact, you probably despise them. After all, they’re going after your target audience and customers. Wait … who are we talking about again? That’s right: your competitors. 

Even though you can’t stand them sometimes, your competitors can sure teach you a lot. There is a ton of information (and business lessons) you can learn from scoping out your competition. Instead of ignoring them, pay attention to what they’re doing right and wrong. 

Keeping up with your competition can only help you in the long-run. Rather than steering clear of your competition altogether, conduct some research and dive deep into your competitors’ strengths and weaknesses. That’s right, folks. I want you to revisit the SWOT analysis. But this time around, use it to dissect your competition.

What are your competitors’ strengths? Do they have any threats in the market? How can you use your competitors’ weaknesses to benefit your business?

If you want to avoid this marketing mistake, stop letting your competition slide by and start doing your research now before it’s too late.