Your Finances in 30 Minutes
On this episode of The Business Brunch, we are joined by experts Ria Shepheard, Garry White and Giles McKean from Charles Stanley Wealth Managers as they discuss inflation and the impact on consumables, interest rates and their impact on individuals and the global economy, savings versus investments and an overview of equity investments.
The world of finance can seem pretty intimidating and is something a lot of people don’t know enough about, but economics mostly reflects common sense, so understanding it may not be as hard as you think.
Giles outlined the essence of inflation… “Inflation refers to a general increase in the price of goods and services in the economy, over time, that effectively decreases the value of money because you can buy fewer items with the same amount of cash. The opposite of this is deflation, where prices are falling. Countries aim for an average rising inflation of about 2%.” He went on to discuss this in more detail and the thought process behind the benefits of a 2% increase in inflation, “my mother is installing solar panels on her roof. If she thought that the price of electricity was going to fall each year for the foreseeable future she might not bother. As a result, her cash would just sit in the bank being relatively unproductive.” The overall problem with inflation is that you can have the same amount of money but it will eventually get you less and less as prices start to rise.
The discussion moved to savings, shares and government bonds. Garry stated that “Bonds are safer than shares, but they offer a lower return. As a result, when equities are rising in a bull market, volumes fall and vice versa. Equities do well when the economy is booming.” Bonds and equities were later discussed in more detail, and Garry concluded by saying that “Equities are the riskier asset class because you risk losing all of your capital. However, they demonstrate superior returns, and the ability to beat inflation over the longer term.”
More in Finance & Insurance
Unipart announces financial results for the year ended 31 December 2023
Unipart delivers strong growth and revenues exceed £1bn
Charles Stanley ...
Established in 1792, Charles Stanley is one of the UK’s leading wealth management firms, with a rich heritage of delivering high quality client service. Although we are more than 200 years old, we are focused on investing in our future, embracing technology and innovation, and adapting to changes in society to help our clients prosper. Operating from more than 20 branches across the UK we provide bespoke investment portfolios and tailored financial advice at every stage of your financial journey.
Your FREE guide to the Spring Budget 2023
Chancellor, Jeremy Hunt’s Budget 2023 revolved around the theme of back-to-work through the extension of free childcare, and the lifting of pension caps.
From this author
Wootton Science Park unveils £35 million masterplan for new SME science...
Hartwell Plc, the automotive and property development company, has unveiled emerging designs to deliver new carbon efficient lab and workspace buildings for small and medium sized science and technology companies and amenities at Wootton Science Park to the south-west of Oxford.
B2B Networking in the UK? Welcome to B4
Connecting Multisector Business Owners, C-Suite, Decision Makers
Unveiling B4 HUB: A New Era of Benefits for B4 Members
In the dynamic landscape of business, connections are the cornerstone of growth and success. At B4, we’ve always believed in the power of collaboration and support within our community. Only last week we saw the power of four of our Platinum Members coming together as the fantastic team at Sobell House stepped up the launch of the incredible OxTrail 2024 at Oxford Brookes University with the support of Darcica Logistics and Aston & James.