About 3 months to go!02 August 2020
With our Prime Minister suggesting that the UK may be 'back to normal' – if that is ever possible again – by Christmas 2020, it's easy to forget that in the US, the 2020 race to the White House and the Presidency may be a crunch date for us all to observe on 03 November 2020. Will President Trump win again in America? Perhaps the accelerating casualty rate due to COVID-19 may provide the final answer?
From an investment perspective, many UK-owned assets are situated globally, and will see their values move owing to currency changes and volatility. I am sure it will be noteworthy to see what happens to the strength of the US Dollar against other currencies as we approach the final days of the US election.
Let's not pretend that the UK is without its own economic issues, with the transition period, which followed Brexit, ending on 31 December this year. 'No deal' looks like a real possibility as the posturing of the various now warring factions embrace discord as they approach the deadline. Let us hope they can see some sense, noting that the outcome may have an effect on the value of GBP Sterling against other currencies. An illustrative example of this is when the result of the Brexit vote was revealed in June 2016, with Sterling falling in value, and the value of many investment fund holdings increasing on this reduction.
With the serious effects of the pandemic weighing on the economies of the world, it is easy to forget the scheduled events that will still occur, irrespective of any lockdown requirements. UK unemployment will rise as furlough schemes end, high streets will suffer, and COVID-19 rates will continue to climb...and lots of change is ahead of us.
Now might be a good time to review your investment plans and objectives as we head into the autumn of 2020, a very unusual year!
No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
Chartered Financial Planner
Chapters Financial Limited