Thinking About Dipping Your Toes In The Investment Market?

It's hard to believe that a whole year has passed since the historic referendum in which the British public voted to leave the EU.

In the immediate aftermath of the referendum, which took place in June 2016, there was a fall in the British stock market, which seemed to confirm fears that a vote in favour of Brexit would be harmful to the British economy. One year on however, the ‘Brexit bounce’ as it has come to be known has caused a mini stock market boom, which has seen some of our clients’ investment portfolios grow by up to 25 per cent in the past 12 months. The bounce has largely been caused by a fall in the value of the pound compared to most foreign currencies. While this has led to a sharp increase in the price of imports, the upshot of this has been to make the cost of British exports more competitive, so cheaper exports mean more profit, leading to higher dividend pay outs and therefore increased share prices. Statistics show that since the market re-stabilised, the FTSE 100 Index (this being the index of changes in the values of Britain’s top 100 largest companies) has actually grown by 23.8 per cent over this period, causing clients with more speculative investment portfolios to see growth of up to 25.39 per cent, while clients who invested much more cautiously (usually those approaching or actually in retirement) have seen growth of 12.91 per cent over the same period. Are you thinking about dipping your toes in the investment market or do you have existing savings which you feel are not growing very well? Explore Wealth Management in Cramlington could help you get started. With almost 40 years’ experience in the financial services industry, Explore Wealth Management provides honest, professional advice on investments, pensions and retirement plans.