The Dow Jones Industrial Average breaks through 30,000 point barrier for the first time in history. Click the link below to read more:
Dow Jones smashes 30,000 point barrier in global stock market rally | Business News | Sky News
The economic reality of ‘main street’ remains; where businesses have been severely impacted – many businesses close to collapse or already failed – where ‘Wall Street’ and the ‘Square Mile’ to a lesser extent have moved to recovery, supported by both fiscal and monetary policy intervention.
As we wrote many months ago – investment markets do not always operate in the ‘here and now’ – markets often look beyond the immediate crisis, especially when unprecedented levels of financial support are provided to the global economy.
The US still awaits (and needs) further stimulus for ‘main street’ support – which is fought between the political parties and remains without conclusion at this point. Further stimulus will boost the economy – therefore asset prices – which is not the absolute intention but a consequence!
This is a primary reason why investors must consider their position and why we have been a strong advocate for reviewing ones asset allocation and deploying capital accordingly.
Payback
Payback will be required. The solution will be a tax impact in due course so, again, planning is so very important.
Today, Chancellor Rishi Sunak will unveil his spending review. The spending review is not a budget but the review may highlight the ‘situation’ and signpost the payback – over time!
Click the link to read a summary from Sky News:
COVID-19: The chancellor’s spending review is today – here are seven things you should know | Business News | Sky News
As always, if you have an advice need, simply get in touch.
Best Wishes.
Richard and the Best Price FS Team