The team have been busy since my last blog, tidying up all of the paperwork after the conclusion of the tax year. That end of year project was swiftly followed by helping those clients that have surplus funds in their General Accounts to use their 2021/22 ISA allowances. May as well get a whole years additional tax-free growth if possible.
The Markets
I have taken the opportunity to have a Spring Clean and sell down somewhat, without immediately buying the replacements. 7000 points for the FTSE 100 index has been and remains a psychological barrier, as does 35000 points for the S&P 500 in the US. A certain level of resistance is reached at these round numbers. We often see a repeated “knocking on the door” around these levels. It’s more than likely that as global markets have accelerated higher, they now look to have got a little ahead of themselves. Looking back over previous early market cycles, a rip-roaring climb in year 1 usually results in a period of chop in year 2 before markets resume their climb higher again. This sideways up and down chopping action isn’t a bad thing, the alternative is simply a bigger drop.
Continue reading “May 2021 Update”