Save & Invest Financial Planning

M&G Fund Manager

Post UK Election Webcast - Friday 9th June 2017

Jim Leaviss (M&G Head of Retail Fixed Interest):

 

For markets:

 

UK Economy:

 

Steven Andrew (M&G Multi Asset Fund Manager):

 

In response to Questions:

Q:  What is the outlook for UK inflation and interest rates?

A:  Expect weaker £ to drive up inflation due to increasing import prices in short term but argue this inflation is temporary as it will disappear when the currency normalises (unless it starts to be reflected in wages growth).  This inflation viewed as bad inflation as central banks can’t control it via interest rates.  Wages are the key inflation indicator for the economy not CPI.

Q:  View on currency investing

A:  M&G tendency is to hedge their US$ exposures back against the £ since the £ is cheap.  Steven is still positive on US valuations as they’re supported by earnings growth.

Q:  What should advisers be telling their clients to do in response to UK election?

A:  Nothing, stay invested.

 

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