Three things your client may call you about this week

financialadvice

'Black Monday II', VCT tips and risk appetite - here's our weekly heads-up on the financial stories that may have caught your clients' attention over the weekend … 

Stockmarket Crash Warning: Black Monday Is Coming Again - Ex-Trader

This Express article flags up a warning from author and former trader Simon Watkins that another ‘Black Monday' crash could be on the horizon. According to Watkins, a number of the factors that coloured the run-up to the notorious 1987 market fall are now being mirrored in 2017.

The Dow Jones trading close to all-time highs is one factor Watkins highlights as the US experiences its third-longest economic expansion in history. Fears over economic stability in Asia is another parallel Watkins draws, along with the dramatic drop in the value of oil - from more than $100 (£76) a barrel in 2014 to below $60 today.

"The similarities in market-related and geopolitical factors in the run-up to the 1987 crash and current day are remarkable and certainly prognosticate a significant crash," says Watkins."However, this doesn't mean Armageddon for investors. Correctly positioning a portfolio in anticipation of such a fall allows investors not just to avoid catastrophic losses but also to make alpha-returns in the immediate aftermath and beyond."

These Funds Come With A 30% Tax Boost - And Here Are Five Of The Best

As rumours circulate that the government could make less than favourable alterations to the tax-efficient sector as soon as next month's Budget, this Telegraph article gathers together what it considers to be five of the best venture capital trust (VCT) funds.

The uncertainty surrounding the sector as a result of the Patient Capital Review has brought forward many fundraises this tax year, with Tilney Bestinvest's Jason Hollands explaining:"An incredible 25 VCTs are seeking new cash at the moment. This has been fuelled by firms seeking to raise funds now in case there are any curve balls in the Budget."

The five VCTs highlighted by the article are Baronsmead, Mobeus, Northern, Octopus Titan and Unicorn AIM. Of these, according to FE Analytics, the Unicorn AIM and Northern Venture offerings top the performance charts, returning 281% and 266% respectively from April 2008 to April 2017.

Appetite For Risk? Tuck Into The Croc Au Vin

This Sunday Times article sees the reporter and a friend visit Investaurant - a pop-up restaurant in North London where guests are served food according to their appetite for financial risk. After filling out a questionnaire, the reporter is classed as ‘high risk' and served partridge, pheasant and duck pie, while her friend is put into the ‘very high risk' bracket, which means fillet of crocodile garnished with spring onion and crispy crickets.

The experience is part of Investec's Click & Invest service, which aims to demystify the world of investing and encourage those with a spare £10,000 or so to get into stocks and shares. According to the Sunday Times, the underlying point is that investment should not be seen as dangerous - and yet apparently just a quarter of Brits would invest £10,000 in stocks and shares if they received a sudden windfall.

The piece quotes Click & Invest chief executive Jane Warren as saying:"The big sticking point for people when they look at investing is risk - they think: ‘I'm going to lose all my money, so I'm going to put it in a bank and then I'm safe'. The whole concept of risk clouds it.

"What we're trying to do with the Investaurant is to say there is risk in every aspect of your life, every decision you take - from the moment you get up to the moment you go to bed. Investment risk, as long as you are informed, is the same thing, but many people see it as danger."

 

This article was written by Professional Adviser from Professional Adviser and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

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