October, October should it be feared?
October is coming and I Â need a small favour.
We are constantly reviewing how we do business and the sectors we are involved in. and with the Financial Services Authority proposing even more change it is important to us (IFS) and me  that we are offering you, our clients the services you require and of course we meet your needs. I would be grateful if you could take the time to comment on our services and give us some pointers towards the future.
http://www.surveymonkey.com/s
Thanks in advance – if I get at least 20 responses (and this email goes out to nearly 700) I will double that number convert it to pounds and give it to Cancer Research and or the British Heart Foundation – you choose. If I get a full response I will cap the donation at £200.
Comment on The Market.
We are probably due a period of reflection now the investment markets have bounced back a little, however the view is an uncertain one.
Traditionally the final quarter of year is good for investors, however there has been the odd upset in October  -  in  October 1917, the  Russian Government was removed from the Kremlin  and in October 1929  worldwide Stock Markets collapsed with  a 30% fall in the US indexes.
Following on we had serious market falls in 87, 97, 2000 (FTSE 100 fell twice in the same month) and in  2001 we had the collapse of Railtrack.
All in all not a good month, however as I have already stated, for those in balanced investment portfolios none of these events should be feared, as the markets do bounce back, eventually.
Back to current events, it seemed at one point we were going to see the Second ‘re-nationalisation’ since New Labour came to power, the first being Railtrack. However Northern Rock seems to have escaped that for the time being,  with a generous guarantee from the Treasury. Despite that the Northern Rock share price has fallen again this morning and it looks like it will be taken over very shortly, and will probably disappear. Like events on  the African Plain, the sick and the slow get eaten by a larger more aggressive player.
I think there is a lot more bad news to come from these ‘sub prime’ issue in the U.S, and the Big 4 Banks in the UK have some owning up to do before matters are resolved.
For those of you needing to move, and or arrange Mortgage Finance, there is some good news on the horizon as the Mortgage Market place seems to have stabilised, however most Estate Agents are reporting a slight decrease in House Prices (-2.6% from August Levels, source Rightmove).My feeling on this is that the previous rate increases have had the expected effect. Please be prepared for this to get worse when considering your new purchase, noting that  the market place for some specialised lending may dry up which will cause further problems.
Other matters – Is Gordon going to call an Election? I think yes, he will do so  in order to get a mandate and  there seems to be no effective opposition which concerns me a little. (I have left myself wide open to get shot down with that comment). With the conference coming next week, maybe we will find out.
Another 5 years or so, of Stealth Taxes and less Inheritance to pass down seems likely. Only time will tell.
It is now very late in the day to put in place an Old Style Enduring Power of Attorney, as these documents need to be signed by the end of the September to be valid. The New Style Lasting Power of Attorney is a larger (more expensive document to produce and administer), for those considering an old style one please contact me as a matter of urgency, as there is still a chance to obtain one, but you will need to act very quickly.
Have a great weekend.
Richard Smith
0845 226 9106
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