July 2009

JUNE 2009

As we lurch from an economic and banking crisis to seemingly, a political melt-down, it does make one wonder what the future holds! It is understandable therefore that the public have grave concerns about their future, whether it be simply hanging onto a job or trying to keep the family home, there is a lot of hurt out there for many! For others, the reductions in interest rates as well as lower rates of inflation have

meant that in spite of the economic conditions they are currently better off today than they were a few years ago. What strange times we are living through. Regardless of which camp you are presently sitting in, there is even greater reason today than ever, to ensure that you seek sound financial advice.

For the past 4-5 years I have been warning my clients to be cautious in making stock market investments and also to avoid the United States like the plague! In spite of this, I found myself last year on the receiving end of a presentation made by a major financial institution on the merits of their new U.S. equity fund!! I suggested to the gentleman that surely now, was not a good time to be offering a new American fund, but he seemed convinced, that as the worlds largest economy and in spite of a long term bull run, it was a great idea! Of course, as we now all know only to well, within 9 months, many American banks had failed or were badly tainted. Gladly, I side -stepped that one, but it does go to show how working as a financial adviser one has to be so careful.

Going forward from here we have to try to navigate our financial path and might I suggest that we do so very warily. With Korea firing off missiles and problems in Pakistan as well as Israel making threatsagainst Iran, gold is back on the rise as we see geo- political unrest looming and the threat of inflation, although not reported widely, will surely be a feature on the future horizon. In support of that notion I did see that Norwich Union recently withdrew an investment linked to future inflation rates, the cost of the guarantees now simply too great to make such an investment viable. Fortunately I was able to get some monies in before closure and I am confident that in five years time I will have some very grateful clients.

Whatever your current situation or your future dreams may be there is a whole world out there ready to throw you off-course. Whilst I cannot possibly know what the future holds I believe that two heads are better than one and working with a financial adviser that has your best interests at heart will only serve you well in the future.

Adrian Reese