A new UK government – but what does it mean for wealth managers?
So, it turns out that the polls were right all along. Here in the UK, a new Labour government came into power after the 4th of July election. They now have a massive majority in the House of Commons as had been forecasted consistently from the day Sunak stood in the rain outside No 10 to announce the election date. The UK now has one of the most stable governments in the G7.
That’s after Macron’s surprise call narrowly avoided an RN election victory following a tight second round ballot recently. Across the pond, a certain Donald J. Trump now looks very much to be the front runner for the US Presidential election on 5th of November. That’s following the failed assassination attempt on his life which has helped garner more support for him and his campaign plus Joe Biden’s apparent refusal to step aside from leading the Democrats despite increasing concerns about his cognitive abilities. One thing we’ve learned is to never underestimate ‘The Donald’. We can expect some serious analysis into exactly what that prognosis means for the global economy and for markets in the weeks and months to come. With expectations that interest rates will start to fall or fall further in those economies such as the EU and inflation receding, it’s an interesting mix for asset allocators and wealth managers alike.
Beneath the covers
This summer edition of Wealth DFM Magazine provides a snapshot of just some of the great coverage we’ve been running online recently. In particular, the outlook for receding inflation lies behind the analysis from PIMCO on page 8, on yield advantage. One of the most tipped sectors to do well given the current economic climate is that of digital infrastructure – and why it represents a wholly different prospect to that of more traditional property investment . Wealth DFM’s recent webinar looked at the topic in some detail and on page 5 we bring you just some of the highlights from our conversation with Gravis sage, Matt Norris. Matt’s infectious enthusiasm for this sector certainly makes him a leading light in our view. Again, on page 14, we ask Matt to highlight five reasons why you should consider investing your property allocation into digital infrastructure assets.
Over the past few weeks, the trending articles on www.WealthDFM.com have largely been related to analysis following the Labour landslide victory and what it means for the business of wealth management. From page 16, we bring you another snapshot of just some of the reactions from experts across the profession as to what might be coming down the line through significant policy changes in the months ahead. Just a few weeks in and we’ve already seen a host of new announcements following on from manifesto commitments. All eyes will be fixed on the new government’s first fiscal event expected in the Autumn. That’s when Chancellor Rachel Reeves will be putting real flesh on the bones with the OBR forecasts leading the way of course. Thankfully it seems that we don’t have to be too concerned about the chances of unfunded commitments a la Liz Truss so at least the bond markets can breathe a little easier on that front.
It’s an interesting summer ahead. We’ll be covering all the relevant news and views here on www.WealthDFM.com. See you there!
Sue Whitbread
Editor | Wealth DFM Magazine
