Inflation and investments

ended 12. April 2022

Tomorrow morning at sparrow's fart the Office for National Statistics is publishing the latest inflation data. It's expected to rise further, according to economists, potentially as high as 6.7% (from the current 6.2%). We want to know:

  • What are you advising clients to do in the current climate to keep returns real?
  • Are clients contacting you, concerned about the impact of inflation on their investments?
  • Have you got clients who are taking on more risk to try and combat inflation?
  • Every client's circumstances, risk profiles and goals are different, but are there any rules everyone should follow right now?

Any other thoughts, jot them down. Just a paragraph or two will do.

1 responses from the Newspage community

Here at Permanent Wealth Partners, we have a different philosophy when it comes to investment strategies. A lot of the work we do is helping clients understand markets, how they work and the impact on their finances. Clients have to be very careful as the old way of doing things leave them very exposed. We're having lots of conversations with clients around what really is "risk". Is risk to them the natural volatility of equity markets, or is risk to them that their investments will continually underperform because of an antiquated and unsuitable asset mix? As a rule of thumb it is hard to justify holding any cash or bonds in longer-dated investments that you're not going to need to touch for at least 10+ years. Anyone suggesting otherwise doesn't understand how the financial world as changed over the past few years.