Recent quarterly updates from UK fund managers paint a slightly more favourable picture than you might expect. True, negative market movements continue to weigh on assets under management, but retention rates provide cause for optimism. And research from Bowmore Financial Planning shows that almost half (47.9 per cent) of all money paid into UK individual savings accounts (Isas) is now put into stocks and shares Isas, up from 33.2 per cent in the previous year, and the highest level since the global financial crisis.
Uncertainties have stalked capital markets through much of the year, both in terms of geopolitics and the direction of US bond yields. Central bankers remain hawkish, so the trajectory of the latter will continue to have a major bearing on the valuation of all other assets, including equities, but it pays to remember that the market is not the economy, especially if you wish to avoid cursory investment decisions.
The initial estimate of UK gross domestic product (GDP) for the September quarter showed a fall of 0.2 per cent. The figure, produced by the Office for National Statistics, was better than many economists had been predicting and the contraction was exacerbated by the funeral of Her Majesty Queen Elizabeth II – a one-off if ever there was one.