The Prosperous Pound

Investment markets in May experienced volatility amid concerns that economies could fall into a recession as inflation pressure remains high.

While you may be worried about the volatility your investments have experienced, keep your long-term goals in mind. A long-term time frame can help smooth out the peaks and troughs of markets. This is because, historically, markets have recovered when you look at the bigger picture.

UK

At the end of May, chancellor Rishi Sunak unveiled a package of measures designed to alleviate some of the cost-of-living challenges families are facing.

The £15 billion package will be paid through a levy on the profits of energy companies, known as a “windfall tax”. Among the measures introduced were one-off payments to vulnerable families and support to reduce energy bills for all households.

The measures were made after the latest inflation figures show that, on average, prices increased by 9% in April – the highest level since 1982.

ESG investing means considering environmental, social, and governance issues when investing. While ESG encompasses a wide range of issues, there’s often a focus on the environmental aspect, from climate change to plastic pollution. However, that could be about to shift.

According to a report in FTAdviser, young investors are placing more importance on social factors.

In a survey, 57% of investors under the age of 45 said their preference was social impact investments rather than environmentally motivated ones. Among the under-25s, this rises to 67%.

There are plenty of reasons why younger generations are keen to focus on the social aspect of ESG investing.

Improvements in technology mean people are more aware than ever of the issues others are facing, including those they may not cross paths with day to day. This is likely to have played a role in investors wanting their decisions to have a positive effect on people and communities.

Over the last few months, you’ve probably heard a lot about inflation and the effect it can have on your cost of living. While you may be familiar with the headline figures, how is it calculated?

The key figure that you normally see is the Consumer Price Index (CPI).

In the 12 months to March 2022, according to the Office for National Statistics (ONS) data, the CPI rose to 7%. This is the highest rate of inflation for 30 years and was driven by rising fuel and energy costs, which has been linked to the war in Ukraine.

The Bank of England (BoE) has a target of keeping inflation around 2%. However, the BoE expects inflation to rise to around 8% and then fall back over the next two to three years. It noted that even though the rate of inflation is expected to slow down, the prices of some things may stay at a high level when compared to the past.

Do you have life insurance in place? A survey suggests that some homeowners are choosing not to take it out because of common misconceptions about how life insurance works.

Life insurance would pay out a lump sum to beneficiaries if the policyholder passed away during the term. As a result, it can provide financial support to your loved ones when they need it most and ensure they don’t need to make large financial decisions when they’re grieving.

You can choose how much cover life insurance provides. Often, this is linked to how much your mortgage is. You can also consider other things, such as school fees or day-to-day living costs, to ensure your family would be financially secure if the worst happened.

You can also select how long cover will last. This is often tied to how long remains on your mortgage or when children will reach adulthood.