• Wealth Management
    & Employee Benefits:
    0345 241 6500
Request a call

Wealth Management News

Latest News
04 Jul 2012

Wealth Management News

UK ISAs Fall, Analysts Call For Patience

UK individual savings accounts (ISAs) have slumped by around 25% to 30% over the last three months amid a deteriorating eurozone crisis and overall economic uncertainty. However, experts advise investors to remain calm and bide their time, the Daily Telegraph reports.

The newspaper quotes wealth managers, as well as financial advisers, who believe it is only a matter of time until stock markets start going up again. That is why investors are encouraged to continue following their long-term goal, without panicking at their current fund statements. In fact, experts claim that panic may have contributed to the situation, as a large-scale sell-off has resulted in stocks being traded at historically cheap levels.

There are several reasons why investors should hold their nerve and await better times, experts explain. First of all, the eurozone does not represent a huge share of global stock markets. On the contrary, 90% of the total market value of the world's stock market comes from outside the eurozone.

With regard to this fact, companies that see demand from other markets, especially the US, are set to profit. Emerging markets can also play a significant part, as they are not affected by the debt crisis.

Moreover, financial advisers remind investors that on many occasions a company's earnings per share are far higher than dividend payouts, which means that businesses have money put aside that can be used to hike payouts.
 

Request a call

X

Thank you for your request. We will be in contact as soon as possible.