As extreme losses take hold, so-called “circuit breakers” are being triggered, particularly in US indices such as the S&P 500. But what are these circuit breakers, and why are they being activated? Stock markets in the USA have circuit breakers to act as a break on ultra-panicky indices. In times such as these they become an increasingly implemented measure to prevent the total collapse of share prices.
A recent survey conducted by Schroders suggests that Brits are failing to make sufficient provision for retirement; there is a mismatch between the income people believe they need in retirement and the actual cost of living, which means those who are not yet retired expect living expenses to take up just 34% of their retirement income, whereas in actuality they account for 49%.
US, China and now Mexico; trade tariff talks have hit stock markets hard, sparking fears of a global recession. The headlines make for a perfect cocktail of doom and gloom, and naturally, investors feel uneasy. Activity on the Selftrade platform shows a growing movement into cash – up 12.4% since the start of 2018.
The one key thing you need to know about your ISA is the deadline. If you don’t use your 2019-20 allowance by 5 April, you lose it. You can put up to £20,000 in an ISA in the current tax year. If you can afford to do that every year you can work out how much your tax-free fund will be worth after five or 10 years.
Stock markets have started the year on a gloomy note. Worries over the outlook for China, for post-Brexit Britain and for the fortunes of the US economy have seen share prices suffer. Even the largest and most dynamic companies have been hit. For investors looking at where to put their money in 2019, it is an unsettling picture.
Investing your money always involves an element of risk but investors have a wide variety of both higher risk and lower risk investments to choose from. At times of economic or market uncertainty ‘defensive’ stocks typically increase in popularity.
A run of disappointing economic data from the UK is undermining the chances of the Bank of England hiking interest rates in the near feature. This will reinforce the very modest rates currently available from cash deposit accounts and is a clear reason to look again at the merits of instead investing your money in the markets.
While most funds on the market are what are known as open-end funds, or mutual funds, there is another option that has become exceptionally popular in recent years. Investment trusts have traditionally been less popular than mutual funds, but this is changing. Recent figures from the Association of Investment Companies (AIC) show that investments in these trusts reached record levels in the last twelve months.