21st October 2013

Avalon News

These stocks are generally a higher risk investment as AIM-listed companies tend to be small and relatively new businesses, making it difficult to evaluate their trading history.  However, for cients who are prepared to take a risk, they can offer good profit opportunites.  AIM funds should not be thought of as a short term investment.  It would be wise to advise a long-term timeframe of five years or more to ride out market volatility.  Investing regular premiums rather than one-off lump sums is another sensible way to tackle uncertain times or periods of stock market volatility. This means a greater number of shares can be bought when the share price falls, which will result in higher overall investment returns when a recovery takes place.  Monthly savings also help remove the risk of emotional bias, as clients aren’t buying based purely on sentiment at the time. Every month, whatever is going on in the world, monthly savings gets invested.

If you would like further information on AIM investments, please do not hesitate to contact our offices on 01666 501710 and we will be happy to help.

The UK economy is "turning a corner", Chancellor George Osborne has said in a speech in London.  Mr Osborne cited "tentative signs of a balanced, broad based and sustainable recovery", but stressed it was still the "early stages" and "plenty of risks" remained. 

The first quarter of 2013 saw a continuation of the rise in equity markets that started in November last year.  Markets seem to have been bolstered by continued strength in the US housing market, and other signs of stronger US economic growth. 

Revised gross domestic product figures showed the UK economy grew by 0.7% in the second quarter of the year, with predictions it could reach 1% for the third quarter.

And in the first week of Q3 the OECD economic agency (The Organisation for Economic Co-operation and Development) sharply increased its growth forecast for the UK economy this year to 1.5% from an earlier estimate of 0.8%.

So the economy may well have turned a corner, but as Mr Osborne says, we are still in the early stages and its risky so lets keep encouraging clients to save rather than spend.  We are all aiming at the same goal posts for the future and looking for that premier league lifestyle.

AIM funds and investments are now eligible to be held within an ISA and are available on the Avalon platform.  Take a look at the Avalon News

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