Podcast Summary
Express love and appreciation with a meaningful Mother's Day gift from Blue Nile: Report insurance claims promptly and take advantage of price drops like Mint Mobile's $15 unlimited plan
During this Mother's Day, express your love and appreciation to the extraordinary women in your life with a meaningful gift from Blue Nile. Blue Nile offers a wide selection of exquisite pearls and mesmerizing gemstones. Plus, enjoy fast shipping options and significant discounts. Meanwhile, in financial news, the riots and looting have caused extensive damage to properties and businesses, with insured losses already exceeding £100,000,000. Insured property owners are encouraged to report the damage to their insurance companies as soon as possible, as many policies require claims to be made within a week of the damage occurring. On a brighter note, Mint Mobile, in contrast to Big Wireless, is lowering its prices instead of raising them. Mint Mobile's unlimited plan is now $15 a month, a significant discount from the previous $30. Overall, it's essential to act quickly in the face of unexpected events, whether it's reporting insurance claims or taking advantage of price drops.
Compensation for riot damages available regardless of insurance: Individuals and businesses can apply for compensation schemes after riots or civil disorder without needing insurance, and small businesses can seek financial assistance from banks.
The Riots Damages Act allows individuals and businesses, regardless of having an insurance policy, to apply for compensation schemes if they've been affected by rioting or civil disorder. Contrary to some reports, declaring an official riot is not a requirement for this process. The Association of British Insurers has requested that the 14-day timeframe for notifying the police and applying for compensation be extended to 42 days, but this has not been confirmed yet. Small businesses affected by the riots can also seek assistance from banks, with some offering emergency loans, waived fees, and repayment holidays.
Market volatility and losses for investors: Despite recent market falls, they're not as bad as the March 2009 crisis, but investors should stay cautious as markets aren't cheap and there's a risk of further falls due to government debt concerns.
The recent market volatility, triggered by concerns over government debt in Europe and the US, has resulted in significant losses for investors, particularly those with defined contribution pension funds. The FTSE 100 index has seen heavy falls and rallies, with the cost to private investors being great. However, it is important to put these falls into perspective, as the current levels are still far from the dark days of March 2009. But, the markets are not cheap based on various long-term criteria, and there is still a risk of further falls. For instance, the US stock market would need to see falls of about 60% for the yield to reach historically cheap levels, while the UK stock market would need to see falls of about 26%. Therefore, investors need to be very cautious and consider the quantifiable downside risks, despite official sources suggesting that the markets are cheap. The market turmoil has been primarily caused by concerns over government debt, and investors need to stay informed about this and other risks to make informed decisions.
Global deleveraging process leading to low growth and potential recession: Patiently invest in global brands and funds for long-term growth amid global deleveraging process, consider drip feeding approach for uncertain market timing.
The world is currently undergoing a lengthy process of deleveraging from high levels of debt, which is likely to lead to a number of years of low economic growth and potentially even recessionary conditions. This process, which affects both corporate, personal, and government debt, has only just begun and there is no compelling case to invest heavily in equities right now. However, for those with a longer-term perspective and a willingness to accept some risk, there are some global brands and funds that look attractive. These include M&G Global Dividend, Artemis Global Income, Schroeder Income, and the Newton Asian Income Fund. For those who are unsure about timing their investments, a drip feeding approach of regular savings is recommended. The bottom line is that it's impossible to predict the exact timing of market recoveries, so it's important to be patient and cautious in the current economic environment.
Long-term investment strategy: Build a shopping list and drip feed money over 12-24 months: Consider investing long-term by building a list of chosen funds or stocks and gradually adding funds, adjusting strategy during market downturns, and being aware of sector challenges like retail's weak growth and riots' impact.
Investors can consider a long-term investment strategy by building a shopping list of chosen funds or stocks and drip feeding money into them over 12 to 24 months. If markets experience significant downturns, investors can accelerate this process and invest at lower levels. The recent riots in the UK have affected retail, leisure, and insurance shares, with significant damage to property, stolen goods, and lost business. Some companies, like JD Sports and Hammerson, have been affected but their share prices have shown mixed reactions. The retail sector was already struggling due to low consumer spending, weak economic growth forecasts, and decreasing growth. Analysts are generally gloomy about the sector for the medium term. The riots have added to the sector's challenges but it's too early to determine their exact impact on share prices.
Impact of Riots on Retail Sector and Markets: Analysts and fund managers avoid retail sector due to economic conditions, riots not a major market driver, potential losses in tourism industry, InterServ may benefit from clean-up efforts.
The retail sector, particularly the lower end, is being avoided by analysts and fund managers due to current economic conditions. Sectors like retail, leisure, and tourism have been identified as potentially affected by recent events, with the tourism industry estimating a potential loss of half a billion pounds if just 1% of planned tourists cancel their trips. However, it's important to note that the costs from the riots are not as significant as some previous large events. While some see potential bargains in the retail sector, analysts and fund managers believe the events in the EU and US are driving the markets, and the riots are not a significant factor. One company that may benefit is InterServ, a shopfront cleaning company, as they will be helping clean up the riots and have reported doing well. Overall, the riots are a significant event for the country, but not a major driver for the markets.
Preparing for life's transitions with health insurance: UnitedHealthcare's short term plans offer flexible, budget-friendly coverage during job changes, ensuring access to a nationwide network of doctors and hospitals.
The importance of being prepared with health insurance, especially during life's transitional periods. UnitedHealthcare's short term insurance plans offer flexible and budget-friendly coverage for individuals who are between jobs, coming off their parents' plan, or turning a side hustle into a full-time gig. These plans provide access to a nationwide network of doctors and hospitals, ensuring peace of mind during times of change. Additionally, this Mother's Day, consider giving back to the special moms in your life with thoughtful gifts from 1-800-Flowers. Save up to 40% on Mother's Day bestsellers when you order online at 1-800flowers.com/acast. And, in other news, did you know that a crocodile can't stick out its tongue? Stay tuned for more interesting facts in next week's financial lowdown.
