Newsletter in the making!

01 March 2018

The next edition of the newly expanded Chapters Financial Newsletter is due out in mid-May 2018 and we have started to prepare the text for the important topics that we want to cover.

This in itself is not an overly remarkable statement, but begins to demonstrate the time and effort that goes into each production to ensure that we inform our clients and enquirers of the financial issues that they might want to consider.

This leads on to the point that there is not a 'one size fits all approach' to our client base because it is so varied and the topics we cover need to focus, either in whole or in part, on issues that will be of interest to a range of different individuals for their financial planning at their life stage. It is one of the pleasures of working within the team at Chapters Financial Limited that we have the honour of enjoying the diversity of our clients' financial lives and needs.

Our newsletter also needs to reflect areas that affect most of our clients, and the recent market volatility is a good example of this. In preparing our future Newsletter, we plan to note:

The start of February 2018 saw significant volatility in many global markets, partly fuelled by the view that future inflation and its factors are likely to be higher than first anticipated. We noted in our last Newsletter that we believe that 2017 was a turning point in the economy as we start to make a transition away from ultra-low interest and inflation rates. Sadly, some press comment suggest a far darker picture, and it was good to see that the markets, once these new inflationary views were factored in, have largely moved forward again. For reference, the Consumer Prices Index (CPI) in January 2018 was 3.0%, a slight reduction from its peak in December 2017 of 3.1%.

There is no guarantee as to how any future transition in the economic landscape will look. Indeed, for some years I have meet with an Agent of the Bank of England once a quarter, and their current view is that a transition will occur, but on a gradual basis, with the expectation that current Bank base rates (0.5%) may only rise by 1.0-2.0 % over the next 2-3 years. It is of note that inflation increases are usually fuelled by growth and the sentiment and expectation for positive global growth remains unchanged. It is also important to note that rate changes affect each client in different ways. If you have a mortgage, you might be considering that borrowing costs will increase, whereas conversely, if you have deposit savings you may be pleased with any uplift, noting it has been years since rates rose.

We will continue to build our Newsletter to allow it to mature as we reach the planned print date at the end of April. Of course, we have the planned Spring Statement from the Chancellor on 13 March and this I am sure will provide some interesting content.

If you do not normally receive a copy of our regular Newsletter, and would like a copy, then please let us know.

No individual advice is provided within this blog.

Keith Churchouse FPFS


CFP Chartered FCSI

Chartered Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899