August 2021 - Lawsons Equity

Staying safe online with your finances

With so many people spending money online, you may be shocked to hear that cybercriminals steal more than £190,000 a day

Everything seems to be done online, from your weekly food shop to buying clothes and even the big stuff like applying for mortgages. But how do you make sure your finances stay safe online?

It’s extremely important to be vigilant, although it can be surprisingly easy to slip into some bad habits which could compromise your security. Here are a few things that you could do to stay safe online with your money.

Check the website is secure

There are millions of websites out there, but not all of them are friendly. Some are created with the sole purpose of stealing your details and/or your money. Luckily, the legitimate sites know this and put in extra measures to give you increased confidence when inputting your details.

One of the things that you could look for is whether the website is secure. This is generally done through https, which will show you a little padlock in the URL bar. If you’re using a modern browser, it should alert you as to whether a site is secured, not secure, or even dangerous. It’s generally not a good idea to ignore these warnings.

Use strong passwords

Remembering your passwords can be a pain, but talk to any security professional, and they’ll tell you that a strong password is important. Use generic ones like ‘Password1’, or even try to be clever with numbers, and use ‘P455w0rD’ are extremely easy to crack. Back in 2012, an expert created a computer that could crack every possible Windows password in six hours or less by trying every combination of upper and lower-case letters, digits and symbols.

Things have moved on a lot since then, and the recommendations now are to make your passwords longer using both numbers and letters. But that doesn’t mean they have to be hard to remember. For example, if you’re at your desk, you could use nearby objects and today’s date symbols to create your new password, such as Mug01/Dog06#BottlePhone2020. Try to use at least three words to create a strong password that’ll be hard to break.

Don’t use the same password everywhere

Once you’ve created a really strong password, it can be tempting to use it everywhere, but that’s not always the best idea. While your password may be safe, the places where it’s stored may be compromised. This is because some cyber-attacks will go after the companies housing the information and not necessarily the individuals. Just look at EasyJet – they came under a ‘highly sophisticated cyber-attack’ in April 2020, and around 9 million customers’ information was accessed, including emails addresses, travel details and even payment information.

While this attack did not impact passwords, if the hackers had managed to steal both an email address and a password, they could use this information to access any other websites or services where the customer used this combination. By having a separate password for each website or service you use, it can reduce the risk of this happening to you.

Be wary of your emails

This year, we expect to see over 300 billion emails sent daily – these are emails between friends, co-workers, businesses, and automated emails. While many of these emails will be genuine, there will be many designed to trick you into providing your personal information – these are called phishing emails.

There are three simple things you can check to avoid falling prey to these scams:

Check the email address – does it appear legitimate and is it sent from the company it’s saying it is
How the email is written – bad grammar and poor spelling are tell-tale signs that the email is a scam
Suspicious attachments or links – every phishing email wants something from you, and the way they normally get this is by using malware, typically accessed by having you click a link or download an attachment.

If the email ticks these boxes do not open, reply or click on anything within it.

Check app security

Just as websites have special security measures, apps do too. A good rule of thumb is to not download an app outside of the official App Store or Google Play (depending on Apple or Android), as both these locations run safety checks before allowing you to download them.

It’s also important to check that you’ve downloaded the official app, as there can be copycat apps designed to trick you into thinking they’re what you’re looking for. Take a little time to check the review, read the description, see the last time it was updated to make sure it’s the right one.

Once you’ve downloaded the secure app, you may find they have extra security measures that allow you to unlock the app using your fingerprint or face. Provided these have been correctly implemented, this can deliver a good level of security – just make sure nobody else can access your phone with their face or fingers.

Online Security in financial services

Unfortunately, there are many scams in the financial services industry too, although there are some warning signs that you can look out for:

Are they backed by a MFSA or other regulatory body? The MFSA is there to protect you by authorising and regulating Malta’s financial system. This applies to banks, building societies, insurers, financial advisors and investment providers – you can search the full register here.

Are they a registered company? Before you do anything with your money, it’s worth checking that the financial services you’re thinking of using are a registered company with a physical address.

Can you call them or have them call you? Just because everything is moving online doesn’t mean a company won’t be able to call you. While you can’t use them calling you as actual proof, if they refuse or claim they can’t then alarm bells should be ringing

Be very wary if they ask for security information as this is often what scammers are trying to access. Never give out your password, PIN or other personal information.

Don’t be rushed into transferring money. Take a step back and a deep breath and think before making a decision. If it sounds genuine, then call the financial services in question using their registered telephone number and talk to their customer care team to ensure the query is genuine. This simple step could help save you from fraudulent activity.

If something appears too good to be true, then chances are it probably is. If you’re being offered a high return for low risk, then you could be being lured in by a scam

Due to the high level of regulation in this industry, a bit of research will be able to confirm whether or not the company in question is legitimate or not.

Lawsons Equity Security

At Lawsons Equity, your security is of the utmost importance, which is why we take several measures to ensure that your information and money are kept safe.

All information you provide on our website is secured using SSL technology with 256-bit encryption. Everywhere we store sensitive information, such as bank account numbers, we use strong encryption algorithms similar to those used by the major high-street banks.

We also insist our advisers and support staff use a minimum password length and require them to use upper case letters, numbers, and special characters in your password to make it more secure.

Like suggested above, it’s a good idea to use a unique password with a decent length and never share your password with anyone else.

If you have any concerns about staying safe online feel free to contact our team at Lawsons Equity today.

Lawsons Equity – Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Limited is a company registered in Malta with company number C49564 and licensed by the Malta Financial Services Authority as Enrolled Insurance Brokers under the Insurance Intermediaries Act 2006, and to provide Investment Services under the Investment Services Act, 1994.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

20th – 27th August 2021

Weekly Market Update

Shares in Europe gained ground on central banks’ accommodative policies, indications that economic growth stayed strong in August, and hopes higher vaccination rates may help prevent hospitalisations and deaths stemming from COVID-19 from climbing to previous highs as economies reopen and case counts increase.

In local currency terms, the STOXX Europe 600 Index advanced 0.75%. Country-specific indexes also moved higher. France’s CAC 40 Index climbed 0.84%, Italy’s FTSE MIB Index ticked up 0.34%, and Germany’s Xetra Dax Index added 0.28%. The UK’s FTSE 100 Index gained 0.85%. Core and peripheral eurozone bond yields rose this week, largely reflecting moves in U.S. Treasuries. UK gilt yields broadly followed core markets this week.

The eurozone economy appeared to remain in expansion mode in August, with the early headline number for IHS Markit’s composite Purchasing Managers’ Index (PMI) coming in at 59.5, a strong reading down modestly from the 15-year high of 60.2 registered in July. (PMI readings greater than 50 indicate an expansion in economic activity levels.).

U.S. equities gained as full Food and Drug Administration (FDA) approval of the Pfizer-BioNTech COVID-19 vaccine, which supported sentiment toward an ongoing economic recovery. The tech-heavy Nasdaq Composite index outperformed the broad market S&P 500 Index and the large-cap Dow Jones Industrial Average. The Russell 2000 Index of small-cap stocks posted impressive gains. Stocks in the energy sector jumped higher as crude oil prices gained about 10% for the week.

U.S. Treasuries posted negative total returns as yields increased. The week’s positive economic data helped push yields higher, while improving sentiment toward riskier assets, such as equities, also weighed on demand for Treasuries, which investors view as a lower-risk asset class.

Japan’s stock markets climbed over the week, with the Nikkei 225 Index gaining 2.31% and the broader TOPIX Index up 2.01%, despite more negative developments on the coronavirus front. The yield on the 10-year Japanese government bond ticked up slightly to 0.02% (from 0.01% the prior week), while the yen fell to JPY 109.9 against the U.S. dollar (from the previous week’s JPY 109.7).

Chinese stocks continued to bounce back from their late-July lows. The Shanghai Composite Index rose 2.8%, and the large-cap CSI 300 Index gained 1.2%. In the bond market, the yield on the 10-year central government bond edged up two basis points to 2.89%. The Renminbi currency appreciated slightly against the U.S. dollar to close at 6.480.

Oil and gold rose sharply for different reasons on Friday. Oil due to a Gulf of Mexico storm, a usual occurrence at this time of the year, gold because Federal Reserve chair Jerome Powell offered no timetable for tapering the central bank’s $120 billion monthly bond purchases.

Brent rose $1.63, or 2.3%, to settle at $72.70 a barrel, while US West Texas Intermediate (WTI) crude rose $1.32, or 2.0%, to settle at $68.74. That was the highest close for Brent since August 2 and for WTI since August 12, according to Rifinitiv data. For the week, Brent jumped by more than 11%, and WTI rose more than 10%, which was the biggest weekly percentage gains for both since June 2020.

Gold for December delivery settled up $24.30 to $1,819.50 an ounce, the highest since the start of this month, and up 2% for the week, and the largest weekly gain since late May.

Lawsons Equity – Financial Advisors Malta

Don’t let investing stress you out

Investing can be scary, and witnessing markets go up and down like a yo-yo can cause anxiety. It is impossible to plan with complete certainty, which can leave you feeling stressed. It’s important to remember that this stress can lead to irrational choices, which could ultimately lose you money. If you want to be a successful investor, it’s important to manage the stress and keep in control. We have pulled together a few tips to help:

Don’t believe everything you hear

Markets can fall in the blink of an eye, and media outlets can react quickly to the story, sometimes simply scaremongering. This can cause fear and stress, and some people choose to sell to avoid what they fear could be further losses. Although markets can then rise again the next day, meaning as an investor who sold, you’ve missed potential growth.

Our advice is to take everything the media says with a pinch of salt. Only follow or listen to reliable sources of news, and do your own research and figures before making rash decisions. Refreshing your Twitter feed will only create added anxiety – don’t do it!

Things change rapidly, it’s normal

If you have access to your investments online or via an app, try not to peep at them too often. Of course, it’s tempting, although it can ruin your investment journey long-term. If you monitor your success too regularly, you may start to worry about minor daily fluctuations, again leading to unnecessary stress.

It’s a good idea to limit the amount of times you view your investment performance. Of course, it is important to check. But instead of daily or even weekly, why not limit yourself to once a month? Remember, investing is a long-term journey.

Consider your level of risk

Investing always has an element of risk. Returns are never guaranteed, and there is of course a chance you could end up with less than you started with. But there are ways to reduce investment risk.

This can be done by only investing what you could afford to lose, and by spreading your money across many investments – this is called diversifying your portfolio. By doing this, the odds of losing any of your hard-earned money decrease.

Anticipate further ahead

If your investment journey is stressing you out, try to focus more on your long term goals. Why did you start your investment journey in the first place? To make more money, right? Don’t lose sight of the bigger picture.

Use an expert to ease the stress

Still finding investing stressful? Consider using an investment expert. Experts sweat the details while you sit back with confidence and watch your money grow.

Lawsons Equity can help you to pick your investments, monitor the news, analyse market data, and, if necessary, make changes to keep it on track with your desired risk level. By trusting an expert, you can de-stress in whatever way you choose, with peace of mind your investments are in good hands. Contact our team at Lawsons Equity today.

Lawsons Equity – Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

Please remember the value of your investments can go down and rise, and you could get back less than you have invested.

13th – 20th August 2021

Weekly Market Update

European shares drew back for the week amid global concerns about the spread of the delta variant of the coronavirus, the situation in Afghanistan, and slowing growth in China. After reaching a series of record highs in the first two weeks of August, the pan-European STOXX Europe 600 Index ended the week 1.48% lower in local currency terms. Country specific indexes also declined. France’s CAC 40 Index fell 3.95%, Germany’s Xetra DAX Index was off 1.14%, Italy’s FTSE MIB Index dropped 2.78%, and the UK’s FTSE 100 Index retreated 1.84%.

Core eurozone bond yields drifted lower in the week, as investors opted for lower-risk assets. Germany’s 10-year bund yield was trading around -0.495% on Friday, compared to highs of -0.456% on Monday. In currency markets, the British pound and the Euro both weakened against the U.S. dollar, as the dollar profited from the risk-off environment.

US Stocks pulled back for the week, but not before the S&P 500 Index reached a record high of 4,480 on Monday afternoon, more than double its intraday low of 2,192 on March 23, 2020. Small-cap stocks lagged for the week, with the Russell 2000 Index briefly falling into correction territory, down more than 10% from its March 2021 peak. More signs emerged of an economic slowdown in China, and Securities and Exchange Commission Chair Gary Gensler urged caution when investing in Chinese stocks because of regulatory uncertainty and disclosure issues.

U.S. Treasury yields decreased through most of the week, with the yield on the benchmark 10-year Treasury note touching its lowest level since August 5.

Japan’s stock markets ended the week sharply lower, with the Nikkei 225 Index falling 3.45% to close at its lowest level this year. The broader TOPIX Index was down 3.03%. The yield on the 10-year Japanese government bond ticked down to 0.01%, while the yen finished the week broadly unchanged at around JPY 109.7 against the U.S. dollar.

Chinese stocks plunged as Beijing’s regulatory clampdown on the technology sector stirred uncertainty about what other sectors the government could target next. Liquor stocks dropped after state media reported the State Administration for Market Regulation was considering new regulations for liquor companies. Health care companies fell on worries that new regulations would also curb industry profits.

For the week, the Shanghai Composite Index fell 2.5%, while the CSI 300 Index of large-cap stocks shed 3.6% to its lowest close since July 28, according to Bloomberg. In Hong Kong, the benchmark Hang Seng Index fell into a bear market, losing more than 20% from its peak earlier this year. As of Friday, stock markets of China and Hong Kong lost more than USD 560 billion in market value, according to Reuters.

The Renminbi currency hit a three-week low of 6.5059 against the U.S. dollar on Friday, weakening past its 200-day moving average and the psychologically key level of 6.50 Renminbi per dollar. In the bond market, the yield on the 10-year government bond declined three basis points to close at 2.87%.

Oil prices had their biggest week of losses in more than nine months, with another fall on Friday. Brent crude fell 8%, settling down $1.27, or 1.9%, to $65.18 a barrel, its lowest since April, and down about 8% for the week. US West Texas Intermediate (WTI) crude for September settled down $1.37, or 2.2%, to $62.32 a barrel on Friday, to lose more than 9% for the week.

Gold prices edged higher and closed up 90 cents to $1,784.00 per ounce on Friday afternoon. Copper rose more than 2% to $4.13 a pound, and then rose in after-hours trading to $4.15 a pound.

Lawsons Equity – Financial Planners Malta

6th – 13th August 2021

Shares in Europe advanced as investors focused on economic recovery and brushed off concerns about rising coronavirus infections in key markets and signs of slowing growth in Asia. In local currency terms, the pan-European STOXX Europe 600 Index ended the week 1.25% higher. France’s CAC 40 Index gained 1.16%, Germany’s Xetra DAX Index advanced 1.37%, and Italy’s FTSE MIB Index climbed 2.51%. The UK’s FTSE 100 Index added 1.34% on strong corporate earnings, and the British pound’s decline relative to the U.S. dollar.

Core eurozone bond yields ended roughly level, climbing into midweek and retreating on expectations that the European Central Bank could remain pacifistic for longer. Peripheral eurozone bond yields followed a similar pattern, but weakened slightly. UK gilt yields also ended roughly unchanged, although yields rose toward the end of the week as data showed strong economic growth in the second quarter, fuelling expectations that the Bank of England (BoE) may begin to withdraw its stimulus sooner.

U.S. equities gained ground with the market shrugging off the renewed spread of the coronavirus and its possible effects on future economic activity. In the S&P 500 Index, value stocks outperformed their growth counterparts. Most sectors advanced, led by materials. Energy stocks slipped on concerns that oil producers’ discipline on the supply side, and concerns that the upsurge in coronavirus infections could weigh on global demand.

The Senate passed a roughly USD 1 trillion bipartisan infrastructure package, including about USD 550 billion in new spending, that aims to rebuild traditional transportation infrastructure, improve access to broadband internet in rural areas, and upgrade the electric grid and water systems. Senate Democrats also approved a USD 3.5 trillion budget resolution, the starting point for a reconciliation bill that would address administration priorities, such as improving access to education and increasing support for families with children.

U.S. Treasury yields ticked up before retracing the move later in the week. Yields climbed, led by increases in long-maturity yields that helped steepen the Treasury yield curve. Remarks from several Federal Reserve officials supporting a sooner-than-expected tapering of the central bank’s bond purchases seemed to spur selling activity earlier in the week. On Friday morning, however, yields largely retraced their previous moves amid the release of a highly disappointing University of Michigan consumer sentiment survey.

Japan’s stock market noted modest gains for the week, with the Nikkei 225 up 0.56% and the broader TOPIX Index finishing 1.40% higher. The country’s deteriorating coronavirus situation kept risk appetites in check, as pressure grew on the government to tighten up restrictions further. Before the release of second-quarter economic growth data, Bloomberg noted expectations that Japan may have avoided a contraction, citing the country’s slow vaccination drive as a key factor. Against this backdrop, the yield on the 10-year Japanese government bond ticked up to 0.02%, while the yen was broadly unchanged at JPY 110.29 against the U.S. dollar.

Chinese stocks recorded modest gains despite concerns that increased government oversight of the country’s technology and private education industries would spread to other sectors. For the week, the large-cap CSI 300 Index added 0.5% and the benchmark Shanghai Composite Index gained 1.7%, according to Reuters. In the bond market, the yield on the 10-year government bond rose 6 basis points to 2.90%. The Renminbi currency was unchanged relative to the U.S. dollar. The official trade-weighted currency index– which measures the Renminbi’s value against a basket of foreign currencies– was close to a five-year-high.

In commodities, WTI crude for September delivery settled down 65 cents to $68.44 a barrel while October Brent crude lost 63 cents to $70.57 a barrel. Both fell further in late trading. O. That saw gold close up 1.5% on the day at $1,778.20 an ounce. Gold firmed to $1,781 in after-hours trading. At settlement, it was up 0.9% for the week.

Preserve your financial future

We work tirelessly for most of our lives to climb the career ladder, diversify our investments and build on our wealth as effectively as possible. Safeguarding your wealth to shelter your finances against risk, and ultimately find financial stability and freedom.

Many expats have several assets, from savings accounts to investment products and pension funds. Each requires a regular assessment and monitoring to ensure that your assets perform as well as possible, and are not exposed to potential losses or damage that could be detrimental to your future.

In this blog, we discuss some of the best ways to protect yourself against such risks and preserve your finances now and beyond.

Professional financial advice is the key to confident conclusions, planned around your specific investment or retirement needs. If you have any worries about the preservation of your wealth, it is imperative that you seek expert support to ensure your assets are adequately protected, ready for everything you wish to do with your life.

Consider inflation

Inflation is a component of long-term investment. The reality of inflation will always be there. However, we can consider strategies to minimise the impact or prepare for expected inflation rates.

Here are a few suggestions:

Switch any long-term savings to equity. This gives you a higher potential for long-term growth and a valuation above inflation.
Study your tax efficiency. This is of the utmost importance to expats, especially expats who may be subject to cross-border or international tax schemes. Tax-efficient can mean reducing your liabilities, increasing your returns, and avoiding losses in the value of your investments.
Smart investment management. Planning is always needed to ensure expected returns exceed inflation, yet still match your appetite for risk.

If you have considered these factors and know that your plans are responsible for expected inflation, you will be in an excellent position to ensure that your assets or savings do not deteriorate in the long run.

Regularly consider your appetite for risk

Your appetite for risk is a key factor in protecting your wealth. Every investment product has a certain level of risk.

Portfolios should always be tailored to your goals, plans and risk strategies, taking into account:

Planned expenditure.
Expected changes in circumstances.
Required returns.
Costs of living.
Age and retirement plans.

By regularly amending your investment portfolio and balancing higher risks with higher returns and, conversely, risk-averse strategies, you may achieve maximum investment success without risk in times when you rely on your investments as a source of income.

Consider Your Tax-Efficiency

The next priority in protecting your wealth is to consider your tax efficiency and consider measures or structures which could improve your financial situation.

Taxes are one of the most important outlays for millions of investors, businesses, and families. By reviewing your tax position and identifying solutions, there may be opportunities to restructure your assets and ultimately reduce your tax liability.

Unfortunately, taxes are part of life, which affects every asset portfolio and covers:

Succession planning and inheritance tax.
Income taxes and wealth levies.
Capital gains charges and investment taxes.

Evaluate Retirement Costs

Many savings products and investments are selected to provide steady income streams for retirement years.

There are many options in the areas of pension schemes and funds, including:

Flexible access to pension wealth.
Lump-sum withdrawals.
Investment risk strategies.
Tax liabilities arising.
Fund management options.
Pension structures and products.

Leaving pension funds untouched can cause significant concerns in retirement. Even substantial pension pots can decrease rapidly over time and make a difference to your expected pension income and retirement standards.

Lawsons Equity often consults with clients with lucrative pension funds that are not fully leveraged. Decisions about pension investments should always be made with experienced advice to ensure that they are in line with your expected retirement age, plans and budgets.

Ensure you Seek Bespoke International Financial Advice

Expats living abroad, many with assets or properties in different nations, and potentially with assets held overseas, should always seek to implement a bespoke strategy to ensure they maximise their wealth, obligations, and inflation risks over time.

Overseas legislation is different in most countries, which affects the breadth of decision-making in financial planning. This often means you have many options.

Lawsons Equity consults with expats who need dedicated support to ensure that issues including taxation, inflation, low return on investment and inadequate retirement planning cannot damage their finances. We want to implement contingency plans to ensure that our clients’ future is always safe.

To arrange a portfolio review or consider the options available to protect your wealth, contact our team at Lawsons Equity today.

Lawsons Equity – Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

Retiring abroad – What you need to consider

Retirement creeps up on all of us. We regularly see young people who believe they have years ahead of them before they need to consider investing and saving for their retirement.

Of course, having a pension is a good start, but your overall plan needs be taken into account. Do you dream of an idyllic, sun-drenched retirement or plan to spend your golden years enjoying the fast life? However you plan to spend your retirement years, you need the financial security to whatever you wish.

We have a few key considerations for you, no matter if retirement is around the corner or years away.

Why should I plan for retirement as early as possible?

If you are not sure of your retirement plans or in which country you want to retire, that does not mean you can’t start making sensible decisions now.

The earlier you start laying the foundations for retirement, the better. It’s as simple as that. Many people believe they can rely entirely on pension products. However, if you add over 10 years of savings to the same pot, you will have a much larger fund when your retirement years arrive.

You should also consider how your retirement plans might change. For example, a substantial nest egg will make it much easier to:

Travel or relocate.
Decide if you would like to retire sooner.
Cover unexpected costs and future medical expenses.
Have fun!

The ideal position to be in is to have saved enough for your retirement plan to do all the above. By seeking professional and tailored financial advice, you will be in the best possible situation to get there.

The more time you have to allow your savings to flourish, the greater the chance to see higher returns and increase the size of your nest egg.

Do I need to amend my pension if I choose to move abroad?

Whether you are already an expat or plan the big move after retirement, it is important to seek professional advice, as there are a few considerations that will affect your retirement if you decide to move abroad, including:

Tax-efficiencies and rates on your particular pension – which may change if living abroad.
Deciding which source of income will you use for general living expenses once retired.
Considering currency exchange rates and how they could affect your pension if it remains in your home currency.

These are just a few points that can affect the retirement strategy for you upon moving abroad. Working with a wealth manager with skills tailored to your needs is crucial to understand your pension options in your home country and wherever you plan to retire.

Which parts of retirement planning do I have to consider in later life?

Only a few years of carefully and professionally managed investments and proactive decisions could dramatically change your financial situation ready for retirement.

Whenever you sit down to reassess your retirement, even if the time is nearing, it’s essential to think about:

The age at which you want to retire, and whether you will stop earning completely or have other income streams.
What is the total retirement budget you currently have, and what amount do you want to have when you retire?
Consider your options when it comes to using your assets, capital and investments to increase your total nest egg.
How and where are your savings currently held, and are their products or investments on the market with higher returns or improved tax exposure that would immediately increase your retirement fund?

The key to successful financial planning is to assess where you are and what you need to get where you want to be. Because even if you have already retired, this does not mean you can’t change your plans and figure out how to adapt your wealth management strategy to suit your lifestyle needs.

All this consideration can seem overwhelming, but is so important. Most people are retired for over 30 years, so it is crucial to invest your energy and money in professional and tailored financial advice.

If you are looking into your retirement plans and options, and would like professional advice on creating an all-encompassing strategy to ensure that you achieve your pension goals. You can contact the Lawsons Equity team to arrange a free consultation with one of our international wealth management experts.

Lawsons Equity – Financial Planning Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

30th July – 6th August 2021

Market Update

Shares in Europe rose on strong growth in corporate earnings and optimism about an economic recovery. In local-currency terms, the pan-European STOXX Europe 600 Index ended 1.78% higher. Major stock indexes also gained ground: France’s CAC 40 Index advanced 3.09%, Italy’s FTSE MIB Index climbed 2.51%; and Germany’s Xetra DAX Index added 1.45%. The UK’s FTSE 100 Index gained 1.29%.

Core eurozone bond yields trended lower, as an increase in coronavirus cases fueled doubts about the wider economic recovery. Peripheral eurozone bond yields largely tracked core markets. UK gilt yields also fell, broadly following core markets. However, this pullback in yields moderated later in the week due to hawkish messaging from the Bank of England (BoE).

The BoE said that “some modest tightening of monetary policy over the forecast period is likely to be necessary” should the economy evolve broadly in line with the bank’s central projections. The BoE, which left its monetary policy and quantitative easing program unchanged at its latest meeting, now expects interest rates to rise from 0.1% to 0.2% in 2022 and to 0.5% in August 2024. The central bank updated its forecast for inflation, which is likely to peak at 4% either late in 2021 or in early 2022. The outlook still calls for the economy to grow 7.25% this year, but the BoE increased its forecast for 2022 gross domestic product to 6% from 5.75%.

US Stocks recorded gains for the week, helping the large-cap benchmarks and the technology-heavy Nasdaq Composite Index to new highs. A sharp rise in longer-term interest rates following Friday’s strong monthly payrolls report augured well for banks’ lending margins and boosted financials shares, and the small utilities sector also outperformed. Energy shares lagged within the S&P 500 Index. Intermediate- and long-term Treasury yields jumped Friday morning following news of stronger-than-expected employment growth in July. (Bond prices and yields move in opposite directions.)

Japan’s stock markets made gains over the week, with the Nikkei 225 rising 1.97% and the broader TOPIX Index up 1.49%, buoyed by upbeat earnings reports. However, gains were dented by a worsening in the country’s coronavirus situation, as daily cases in Tokyo topped 5,000 for the first time, with an advisory panel of experts warning that the situation could deteriorate further. Nationwide cases also reached a record high. These developments prompted the government to expand its quasi-state of emergency to eight more prefectures, where the highly contagious delta variant is spreading rapidly. Against this backdrop, the yen was broadly unchanged, finishing the week at JPY109.7 against the U.S. dollar, while the yield on the 10-year Japanese government bond fell slightly to 0.01%.

Chinese stocks rose as the previous week’s steep declines attracted some buyers. For the week, the Shanghai Composite Index added 1.8% and the large-cap CSI 300 Index ended up 2.3% In China’s bond markets, yields stabilised after falling the previous week. The yield on the 10-year government bond declined two basis points to end the week at 2.83%.

In commodities, Gold suffered its largest fall in months as the price slid 2.6% to settle at $1,763.10 an ounce. Silver also slumped, down 3.8% to $23.30 an ounce. Brent crude oil settled down 59 cents, or 0.8%, at $70.70 a barrel, while in New York, West Texas Intermediate (WTI) crude futures fell 81, or 1.2%, to settle at $68.28 a barrel. For the week, Brent shed more than 6%, its largest week of losses in four months, and WTI tumbled nearly 7% in its biggest weekly decline in nine months. US crude prices have corrected as a result of last week’s fall and are now down 24% from the peak in May.

Lawsons Equity – Financial Planners Malta

23rd – 30th July 2021

Market Update

Equities in Europe were little changed for the week. A positive outlook stimulated by strong corporate earnings was offset by worries about the spread of the delta variant of the coronavirus and volatility spurred by Chinese regulators cracking down on domestic technology and education companies. In local currency terms, the pan-European STOXX Europe 600 Index ended flat. Major indexes were mixed. Germany’s Xetra DAX Index fell 0.80%, France’s CAC 40 Index gained 0.67%, and Italy’s FTSE MIB Index rose 0.95%. The UK’s FTSE 100 Index ended was roughly flat.

Eurozone bond yields fell on concerns about the spread of the coronavirus, and doubts about reflation expectations and wider economic recovery. Peripheral market yields generally followed core markets, falling after the European Central Bank (ECB) suggested inflation could temporarily overshoot its 2% target. UK gilt yields also tracked yields in other core markets.

The major US indexes were mixed for the week. The large-cap benchmarks and the technology-focused Nasdaq Composite index managed record highs before retreating Friday to end the week with modest losses. The S&P MidCap 400 Index and the small-cap Russell 2000 Index broke a string of underperformance and recorded gains. Recently underperforming utilities shares reversed course and were among the best performers in the S&P 500 Index, along with materials and real estate stocks. Reflecting the downward growth and inflation surprises, the yield on the benchmark 10-year U.S. Treasury note ended lower for the week. (Bond prices and yields move in opposite directions.).

The eurozone economy bounced back from recession in the second quarter, growing by a faster-than-expected 2% relative to the first three months of 2021. The year-over-year growth rate of 13.7% also topped prominent estimates. Output expanded in Germany, France, Italy, and Spain, although the uptick in Germany came below forecast due to supply bottlenecks that hindered its manufacturing sector. Euro area inflation accelerated to 2.2% in July from 1.9% in June, lifted by higher energy prices. Excluding food and fuel prices, the inflation rate held steady at 0.9%.

Japan’s major stock benchmarks faced headwinds, as COVID-19 cases reached a record level and the government extended a state of emergency to combat the spread of the virus. The Nikkei 225 Index was down 0.96%, while the broader TOPIX Index lost 0.17%. The equity markets reopened Monday after a four-day weekend to mark the start of the Tokyo Olympics. The yield on the 10-year Japanese government bond ticked up to 0.020%, while the Yen finished the week and strengthened at 109.6 against the U.S. dollar.

Chinese stocks dropped after a regulatory overhaul of the for-profit education sector unveiled July 24 proved much tougher than investors expected, and fears of heightened government oversight spilled into Chinese technology, health care, and property stocks. The large-cap CSI 300 Index sank 5.5% in its worst weekly drop since February, according to Bloomberg. For July, the benchmark shed 7.9%, its biggest monthly drop since October 2018. In Hong Kong, the Hang Seng Index declined 1.4% for the week after the benchmark index shed more than 8.0% on Monday and Tuesday on record-high volumes.

China’s stock market sell-off had a relatively mild impact on the domestic bond and currency markets. The yield on the 10-year Chinese government bond shed eight basis points to close at 2.85%. The Renminbi currency edged up 0.3% against the U.S. dollar to 6.46, a gain analysts blamed more to dollar weakness than to the broader stock sell-off.

Oil prices jumped sharply for a second day in a row on Friday, hitting their highest levels in more than a year, after the stronger-than-expected US jobs report and decision by OPEC and its allies not to increase supply in April. The surge took weekly gains to between 5% and 7% for Brent and West Texas Intermediate (WTI) crude, as prices reached levels last seen in January 2020. Gold dipped again, as did silver, iron ore faded, but copper bounced on Friday. Gold finished the week under $1,700 an ounce and at a 9-month low.

Month: August 2021

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