The Chancellor’s Summer Statement was squarely focused on getting the UK economy back to work. Rishi Sunak detailed his £30bn stimulus package of grants and tax cuts primarily aimed at the leisure and construction sectors.
As you might expect, questions came thick and fast as to how the unprecedented level of government spending would be paid for, but the Chancellor was determined to shelve the gloomy thoughts for another day.
Owen Moore, Investment Manager at Bowmore Asset Management Ltd
A very small minority of investors are in the enviable position where their investable assets form part of a much wider estate. Whilst these individuals or families may need to call upon their investments from time to time often the main objective for these pots of money are to serve generations to come and guarantee a certain level of lifestyle.
Conventional wisdom suggests that value investing (buying companies at prices lower than their intrinsic value with a view to realise that value in the future) outperforms growth investing (buying companies looking to grow their revenue and market share, and therefore grow their overall value). That is, it had been conventional wisdom up until recently.
FTSE100 companies entered the lockdown with enough cash to cover their debts for 292* days on average, shows a study from Bowmore Asset Management Ltd, the asset manager. However, that is down from 369 days’ worth of debt that FTSE 100 companies could pay out of their cash reserves in 2009 during the height of the financial crisis.
Bowmore Asset Management Ltd is authorised and regulated by the Financial Conduct Authority (626431)
Bowmore Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority (115180)