Don’t Mind the News it’s Still a Great Time to Invest
As you’ve probably seen recently, and as the title suggests, the current news cycle doesn’t paint the prettiest picture of the economy. Just in recent weeks we’ve got Brexit uncertainty over here to the Mueller Report over in the States you would not be crazy in thinking that now may be a bad time to start investing.
However, this week in particular, we have been overloaded with positive news regarding the stock market.
I would like to quickly run through what is currently happening with the world’s stock markets and why any time can be a good time to start investing!
As some readers may know our main investing strategy, the cappuccino factor, relies on piggybacking on the market’s overall growth. Similar to the property market. Over history, the stock market rises over time and that doesn’t look like it will change any time soon. Firstly, from the US the largest stock market indices, S&P 500, the Dow Jones and NASDAQ, have just reached record highs. This rise is particularly massive as it has recovered from a really poor winter period after interest rates were raised.
As we all know the US is experiencing a tumultuous time politically, so it is testament to stock market investing that this boost has occurred during this time. These indices are constantly adding new companies as they get bigger. Meaning the collection as a whole grows too. For example, Twitter (only recently floated) saw the biggest rise in this period, over the last few months gaining 15.6%! The Times recently wrote about it here.
Credit rating won’t be affected by Bexit!
Back over here a big piece of news is that Britain’s credit rating will not be affected by Brexit according to one of the biggest ratings agencies. The DBRS, which is one of the agencies that still gives the UK the highest rating, has said ‘The UK economy and the institutions are resilient enough to withstand any foreseeable Brexit-related scenarios’. Read the article here. Some of the other agencies had already lowered our rating closer to the time but DBRS believes that most the negative effects have run their course as people are starting to take less notice. So, our economy may be better off than we thought. This is backed up by the fact that the FTSE is at a 6-month high. This has been spurred by massive sales figures posted by some UK retailers showing that people are still willing to spend.
Last week Fielding Financial wrote about how uncertainty may be causing people to wait to make progress with property deals. If you are feeling similar about investing then hopefully this news has convinced you that its never a bad time to invest. With our kind stocks and shares investing it is long term. There will be ups and downs in that time but the market will do what it has done for over 100 years and keep rising overall.