Everyone's an expert. Really?

Everyone's an expert. Really?


Following the shock result of the recent referendum, every Tom, Dick and Harry has come forward with their view on what the impact of Brexit will be on the property market. We have our own views here at TM training but our egos are not big enough to be inclined to force those views upon you! It doesn't take a genius to work out that we are going to be in a "wait and see" market for a while and as such, agents need to be better than ever before at spotting and prioritising the "must move" clients and applicants. Our mystery shopper exercises are sadly showing huge weaknesses in those aforementioned disciplines.  However, as we have been swamped with agents asking what might happen in the medium and longer term, we sought the opinion of an expert. See below for the words of wisdom of Keith Butten highly regarded and eminent Certified Financial Planner and Chartered wealth Manager, which are addressed to his huge client base of investment clients. They pay for his advice and insight, but he has permitted us to share it with our clients for free. It will provide you with invaluable balanced fact-based information that you can impart to your clients and customers to provide reassurance and guidance, and ultimately to reinforce their perception of you as their knowledgeable, trusted property adviser.

We will be scheduling a number of "Dealing with the post-Brexit market" courses which focus on how to win a dominant share of a diminished market. Let us know if you would like to be on our priority list for those courses.

In the meantime, keep calm and raise your standards higher than those of your competitors. After all, when the going gets tough, the tough get better.



Independent Uk and you

Independent UK and You

 Democracy has spoken and a new era begins for UK Plc. For our clients lots of questions arise and as we have done before, we are here to guide you through the threats and opportunities that will arise.

First of all, it is important to put the immediate reaction of the financial markets in context, as mainstream media has, so far, not done that. The two main UK indexes, the FTSE 100 and 250 were both higher at close of business Friday than they were on 16th June, just one week beforehand. In January and February both were considerably lower.

 For businesses, the immediate thought is that a weaker Pound will push up costs for importers. Conversely however this will also reduce prices of our exports which will encourage trade and this is good for our economy.

 However, currencies, markets and most asset classes will continue to be volatile and will be trading with a ‘Brexit Discount’ for a good while as the ‘new’ UK takes shape.

 Against this we must all remember that the UK will still be located in Europe, has a proud history and many reasons to believe that we can all prosper as an independent nation that negotiates its own deals.

 These conditions will have varying impacts and present differing opportunities for our client’s dependent upon your particular objectives and planning. We have grouped our comments under the headings below so that you can judge which is more appropriate to you and have first provided comments on the revised short term outlook for Inflation and Interest Rates.

  Inflation Risk

 It now seems inevitable that inflation will rise as the cost of goods increase due to a weaker pound. Without good Financial Planning, inflation is often the risk that is forgotten when in fact its impact should be right at the forefront. Those that have cash based investments are hardest hit by higher inflation.

  Interest Rates

 The Bank of England has made available &250bn of additional capital to aid fiscal policy. It is likely that base rate may reduce from its current all time low of 0.5% within 6 months. This is the opposite to what the governor would like to do, as the bank had hoped to raise rates as soon as inflation was looking likely to rise. Lowering base rate is likely to further weaken the pound. Therefore, the UK may be unable to control inflation as it would like to.

 Our view is that lower UK base rate may not mean lower mortgage interest rates as many lenders have minimum base rates and will use the opportunity to increase margins. Fixed rate money is based upon longer term ‘swap’ rates, due to perceived weakness in UK banks, rates may increase so fixing at todays low rates is the best way to gain peace of mind.

 Clients that are Accumulating Wealth

 If you are generating income above your expenditure and are saving surpluses, with or without the help of your employer, you are in the accumulation phase.

 Assuming that the UK can eventually make a success of its new ‘independent’ status you are well placed to capitalise by buying assets at prices that are effectively discounted due to the short term uncertainties that Brexit brings.

 Our understanding of financial markets will enable us to identify and capitalise upon the opportunities for your benefit by adjusting our asset allocations accordingly.

  Clients with liquid capital that wish to capitalise upon opportunities - The Brave

 If you have capital available, time on your side and like to speculate, you might want to consider how best you profit from the opportunities that have and will continue to arise.

 If you wish to move monies from cash into well constructed portfolios, but are unsure about the short term impact of volatility, you may prefer to phase investments over a period of say 3, 6 or 12 months. This was a tactic we used very successfully for clients during the 2007 to 2009 financial crisis.

  Clients that have accumulated their wealth and are now in or are fast approaching the decumulation stage

 You are in the group that understandably will be most concerned by the short term impacts as your current or future income may be reliant upon a level of investment return above inflation.

 The first thing to say is that any anxiety or concerns you have are absolutely normal and something we have seen many times before having guided our clients through many challenging periods before as many of you can testify.

 For those in this group, it is important that we focus on your objectives so that you can continue the lifestyle that you wish to enjoy.

This may mean using different assets to provide short term income, or utilising index linked gilts alongside dividends from equities to provide your income needs.

 You can be certain that we will be doing all we can to assess what is going to be a fast moving and changeable period. This will include significant amounts of research and studies so that we are positioned to assess what is happening and its future impact so that we can secure the best outcomes for our clients.

 What is absolutely clear is that the people have spoken and everyone needs to pull together, be proud and contribute to making Independent UK as strong as it can be.

Whether this is the outcome that we individually voted for or not, we all have a part to play.



Tour Dates

The courses will be

 

Building a Dominant Market Share


This course is all about helping you punch above your weight. With so many high street and online agents to choose from, how can you ensure clients choose you this time and every time? If you want to know the answer to that question, this is the course for you!

 

The course will be a full day course being held in


Manchester on the 20th September 2016

Leeds on the 21st September 2016

London on the 27th September 2016

Bristol on the 28th September 2016

Newcastle on the 11th October 2016

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The course will cost &225 plus vat per delegate.

To book or for more information contact us on 01480 405583, email us at admin@tm-traininganddevelopment.co.uk or visit our website http://www.tmtraininganddevelopment.co.uk/online-booking.php