Autumn Budget 2024 – Review
Yesterday, Chancellor Rachel Reeves delivered her Autumn Statement. We have sifted through the details and hope the following review, which we feel will be the most significant to our clients, will be helpful.
Yesterday, Chancellor Rachel Reeves delivered her Autumn Statement. We have sifted through the details and hope the following review, which we feel will be the most significant to our clients, will be helpful.
STOCKS BEGIN TO MOTOR -
In June 2023 we asked whether a new bull market had begun. Nine months later, we have our answer. The MSCI World index moved to new all-time highs in February. The US and Japanese stock markets have led the way, while others are yet to catch up - including the UK’s.
Yesterday, Jeremy Hunt gave what could be the Conservative Party’s last Budget before a General Election and possibly his last as Chancellor of the Exchequer. He claimed the Spring Budget 2024 aimed to halve inflation, reduce debt and grow the economy.
A Steady Start to 2024 -
The year has begun on a tentative footing following the excesses of November and December, when asset prices galloped higher. Investors have paused to reflect on the ‘wall of worry’ that is said to accompany most bull markets.
Investors enter 2024 with optimism -
Global stocks closed 2023 with their fourth largest annual return of the last twenty years. But those gains mostly came from a narrow group. The seven largest companies in the US - Apple, Microsoft, Google, Amazon, Nvidia, Facebook & Tesla – returned a colossal 111% on average.
We often take steps to fund for future retirement, manage our Inheritance Tax position or make Wills, but planning for care needs is seldom at the top of our lists.
Last month we said ‘the key economic indicators could prove not too hot, nor too cold, but just about right for investors to feel comfortable’. There can certainly be no doubt about the stock market’s favourite fairy tale after November’s gains: Goldilocks wins, hands down. With inflation cooling rapidly and GDP and employment figures remaining stable on both sides of the Atlantic, the stock market has shaken off the bears and moved markedly higher.
Yesterday, Chancellor Jeremy Hunt delivered his Autumn Statement. We have sifted through the details and hope the following highlights, which we feel will be the most significant to our clients, will be helpful.
October was another difficult month for investors - the culmination of three consecutive months where stocks and bonds have declined together. However, the US and UK central banks provided “dovish” statements on November 1st and 2nd, stating policy is adequately restrictive in light of slowing inflation. Markets are now forecasting that further interest rate hikes are highly unlikely and have entered the new month on a positive note.
The first half of 2023 produced good returns from overseas stock markets, as most economies proved more resilient than expected, despite forecasts of a recession at the beginning of the year. As the second half of 2023 progresses, those gains are being given back as higher interest rates and rising oil prices are taking their toll once again.
Our latest newsletter offers tax efficient options on gifting to children, an update on changes to pension legislation and how crypto assets are taxed. We've also got exciting news about a new investment solution, along with a sad farewell after 40 years.
Changes to pension tax legislation announced in the Budget were extensive. Could it be that anything which encourages saving towards retirement should be welcomed?