Is it time to step back into the stock market?
The increase in ISA allowances has placed more focus on the UK investment arena, and in particular the UK stock market, over the last few days. Is it now time to return to the UK stock market or are we being a little premature in assuming the economy has bottomed out?
There is no doubt there are significant funds on deposit for investment into the UK investment arena at some point in time. Whether now is the time to start picking up stocks, and other assets, is open to debate, but one thing is certain, no one investor will ever catch the bottom of the market with a drip feed system favoured by many. It is impossible to say whether markets will shoot ahead in the short term or possibly consolidate at lower levels if more negative news is released.
While every financial adviser you speak to will always remind you that investments should be considered on a long-term basis, it appears that many of us are looking for a short-term return. Those looking for a short-term increase in their investments are the ones likely to take higher risks and potentially see a fall in their assets. However, those who are prepared to look longer term, whether this be five years, 10 years or longer, are likely to benefit from the eventual recovery in UK economy which could take some time to arrive.
Share this..
Related stories
Who will be next to undermine Gordon Brown?
Only a few days ago we saw senior members of the Labour Party step forward in a direct attack on Gordon Brown's leadership with a request for a secret ballot. Yesterday, we saw Mervyn King step forward to place Gordon Brown's hopes for the introduction of "Tobin tax" at the bottom of the list of options for the UK financial sector. So who will be next to undermine Gordon Brown? There is no doub...
Read MoreWill bank bonuses ever return to previous levels?
As we see Goldman Sachs attempting to understate employee bonuses after announcing figures for the latest quarter, there is a feeling that slowly but surely both US and UK banks are reverting back to norm. At the moment it is well-known that the US government and the UK government have asked their respective banking industries to go easy on bonus payments as a means of placating US and UK taxpayer...
Read MoreEco-friendly mortgage on the market
Yorkshire Building Society has just launched its Home Energy Efficiency loan, which offers discounts to existing customers who want to 'go green'.Homeowners can borrow between £1,000 and £15,000 to add eco-friendly improvements to their property.As a discount for the environmentally-friendly, Yorkshire is offering a 1.5 per cent cut in its Standard Variable Rate, which means that borrowers will...
Read MoreEven the venture capitalists are struggling!
If there is one area of the financial arena which more often than not appears insulated from the rest of the economy it is the venture capital sector. This is an area of business that thrives upon political uncertainty, reduced liquidity in the market place and ultimately hovers like a vulture waiting to attack its prey. How ironic that the last few days have seen a number of prominent venture cap...
Read MoreService industries boost UK economy
Service industries boosted the UK's economy despite a flagging manufacturing sector, official government statistics revealed today.Figures from the Office for National Statistics show that the UK's gross domestic product (GDP) rose by 0.7 per cent in the first quarter of 2007, in line with overall expectations.Although the volume of output in the production industries was unchanged manufacturing f...
Read More