Wealth Adviser newsletter 21.01.22

Wealth industry comments on UK inflation hike

The news of the rise in the CPI figures to 5.4 per cent at the end of 2021 caused consternation among wealth managers, with Paul Craig of Quilter Investors looking back to when we last had inflation at that level, some 30 years ago, but Tilney Smith & Williamson’s Sarah Giarrusso comments that despite rising input costs including raw materials and wages, company profit margins remain relatively healthy for the UK equity market.
Research from the online retail broker eToro reveals that DIY investors are gloomy about the global economy. Some 47 per cent of investors think inflation poses the biggest external risk, up from just 38 per cent in June, while one in four (26 per cent) think international conflict is a major external risk, up from 23 per cent in June.
However, along with our quoted wealth managers, the majority of retail investors (56 per cent) are not repositioning their portfolios as a result, suggesting they are happy with their strategies despite this risk.
Our In My Opinion this week has Nick Eatock, CEO of intelliflo, noting that sometimes it takes a crisis to press home just how useful a certain tool or strategy can be. He writes that when the pandemic arrived in 2020, advisers were able to fully demonstrate how effective cashflow planning could help keep clients’ plans on track when unexpected events occur.
Beverly Chandler, managing editor, Wealth Adviser

Copyright © 2022 All Rights Reserved

About | Disclaimer