UK Investment Markets: Weekly Update – April 8th 2019

UK Investment Markets: Weekly Update – April 8th 2019

Yes, I know it’s become incredibly boring for the entire nation but the Brexit debacle trundles on, now more than a week past the original deadline. In this week’s update, I’m just going to give a brief rundown of some of the stories influencing markets this week and sadly, mention of the B-word is unavoidable.

May seemingly rules out fourth vote and no-deal Brexit

Theresa May has apparently ruled out a fourth vote on her withdrawal deal and a no-deal Brexit, in a video statement released on Twitter. The PM acknowledged that MPs have already rejected her deal three times and admitted: “As things stand, I can’t see them accepting it”. She added that the choice was now between leaving the European with a deal “or not leaving at all”.

Trump’s homeland security chief quits after reports of rows

The US Secretary of Homeland Security Kirstjen Nielsen has resigned. Nielsen, who enforced President Donald Trump’s contentious separation of migrant families, described it as “an honour of a lifetime” to work in the department. According to reports in the US, she left unwillingly and under pressure from Trump after a series of disagreements.

Councils hire agency social workers in recruitment crisis

Councils are spending millions on agency social workers amid a crisis in recruitment. Recently released data shows that many local authorities in England are routinely spending tens of millions of pounds – a total of at least £335m in 2017/18 – hiring agency social workers. This means vulnerable children and families are often seeing multiple social workers in a single year.

Internet chiefs to be fined if they fail to block harmful content

Websites bosses could be fined and have their pages blocked if they fail to tackle “online harms” such as child abuse, revenge pornography or terrorist propaganda, under new plans from the Department for Culture, Media and Sport. Charities have welcomed the news but critics have described the measures as an attack on freedom of speech.

Palestinians lead censure of ‘racist’ Netanyahu

Palestinian leaders have condemned Israel’s Benjamin Netanyahu after he controversially announced plans to annex settlements in the West Bank if he is re-elected tomorrow. Figures around the world have joined the condemnation, with US Democratic presidential candidate Beto O’Rourke calling Netanyahu a “racist” on Sunday.

Jewish group passes a vote of no confidence in Corbyn

The Jewish Labour Movement has passed a motion of no confidence in Jeremy Corbyn and concluded he is “unfit to be prime minister”. The JLM said the Labour leadership has “fundamentally failed” to address the problem of anti-Semitism and said a government led by Corbyn “would not be in the interest of British Jews”.

Google accused of avoiding £1.5bn in tax liability

Google has been accused of avoiding £1.5bn in tax. The Tax Justice Network says the sum would be enough to give the NHS 60,000 more nurses. Google refused to comment on the study but said in a statement: “As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK.”

CHOOSING THE SAFEST OPTIONS FOR YOUR INVESTMENTS AND SAVINGS

There is still no likelihood of any stability in the near future neither in the UK or the EU. With the focus on the UK, it is easy to ignore the mess that the EU is in economically and how the sudden withdrawal of Britain’s investment will impact it even more. From an investor’s point of view, it’s almost too risky looking for opportunities anywhere at the current time.

However, that can sometimes be a very narrow view to take as there are always anomalies when there’s economic uncertainty. In fact, when there’s market volatility, more millionaires are created than at other times in economic cycles. That said, it is definitely not a time to be greedy in terms of expecting high returns without any risk exposure. These opportunities seem to exist everywhere but they are absolutely worth avoiding, particularly if you are investing for a particular milestone such as buying a home, funding university or retirement.

At Investor Live, we are always looking for the kind of anomalies that represent safe and sound investments when there’s any kind of instability. From my point of view, it is important that the opportunity to cherry-pick exciting investments with a low-risk profile is not restricted only to those with bulging bank accounts. I represent the “normal” investor and on that basis, any recommendations I make are purely based on independent judgement.

Fixed income opportunities that are backed by tangible assets are the safest possible option for your investment strategy at the current time. You want to be sure you’ll be receiving a determined amount back for your investment and that there’s something underpinning it of significant value. One of the things to consider is not how much the asset you’re invested in is worth but how much of it is owned by the issuer behind the investment opportunity.

Investment over the short-term is always a better idea when markets are volatile and there are a few opportunities to enter the British hotel and hospitality sector for 1- to 2-year terms. One such opportunity comes from Liverpool-based hotelier Signature Living which has a proprietary investment vehicle called a Secured Partnership Investment (SPI). You can find out more about how to invest in this award-winning hotel brand that is rapidly expanding its portfolio of heritage hotels by contacting Investor Live.

About the Author

Amanda Wright is a former risk analyst at Bankers Trust, with specific experience of mergers & acquisitions and corporate finance. As a contributor to Investor Live, Amanda provides valuable insights into the technicalities of fundamental analysis in a way that is easy to understand, to provide retail investors with the tools to make considered investment choices.

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