What are ISAs and why do they matter Individual Savings Accounts (ISAs) are brilliant. Truly brilliant. UK residents can take advantage of compound interest in the most tax-efficient manner; contributing up to £20,000 annually which will subsequently grow free from tax on capital gains, dividends, and interest. As an American in the UK however, things aren’t nearly as simple. How the United States view ISAs Unfortunately, the Internal Revenue Service (IRS) doesn’t recognize ISAs as
PWM Market Commentary – June ’25
May you live in interesting times is a fitting adage for the current investment landscape. The ongoing conflicts in the Middle East and Ukraine continue to pose the risk of escalation, especially if the US becomes more directly involved. These geopolitical uncertainties, combined with the current US administration’s unpredictability, present ongoing challenges for investment planning.
The major shock this year was “Liberation Day” and the announcement of sweeping US tariffs. While markets initially reacted with volatility, a degree of stability has since returned. Whether this apparent relief will translate into a more settled global trading environment remains to be seen. The new US tariff burden is now at its highest since the 1930s, and consensus forecasts point to significantly lower US growth, with global growth expectations also revised downward as a result.
The conflicts in the Middle East and Ukraine add another layer of uncertainty. The threat to global oil and gas supplies is acute; any disruption to Europe’s efforts to restock energy reserves ahead of winter could leave the region vulnerable. The war in Ukraine continues to impact global commodity markets: Russia and Ukraine together supply 25% of the world’s wheat and 12% of its oil, and with Ukrainian harvests down 27%, prices remain 34% above pre-invasion levels. This has also aggravated food insecurity in the Middle East.
There is a significant risk that renewed energy-driven inflation could push Europe into recession next year. At the same time, the US faces the prospect of higher debt levels due to both fiscal policy and the economic drag from tariffs. These factors together present real risks to the global economy.
So what does all this mean to you – the investor?
In times like these, it remains essential to focus on long-term investment objectives and maintain discipline amid heightened volatility. Diversification across asset classes, sectors, and countries has been and continues to be the name of the game.
And finally, to quote legendary investor Charlie Munger, “The first rule of compounding: Never interrupt it unnecessarily.” Emotions run close to the surface when we see big swings in portfolio value, especially with the amount of news we’re exposed to, but learning to ride the waves is an important skill for any investor to embrace.
Share:
More Posts
Using ISAs as an American in the United Kingdom
What are ISAs and why do they matter Individual Savings Accounts (ISAs) are brilliant. Truly brilliant. UK residents can take advantage of compound interest in the most tax-efficient manner; contributing up to £20,000 annually which will subsequently grow free from tax on capital gains, dividends, and interest. As an American in the UK however, things aren’t nearly as simple. How the United States view ISAs Unfortunately, the Internal Revenue Service (IRS) doesn’t recognize ISAs as
What The Rearview Window Tells Us
Forgive the silly title. We drive looking forward through the windscreen, so to speak, but we need our mirrors to avoid getting hit from behind. Someone once told me the reason the windscreen is bigger than the mirror is that we need to see where we are going more than where we have been. As an investment adviser for over 30 years, I can affirm that some truths remain constant. However, one of those constants
Commercial Property v Infrastructure
A properly diverse portfolio contains assets that are less correlated than bonds and equities. Traditionally, commercial property funds have provided a significant element of this diversification. I have argued for over a decade that infrastructure is less risky than these traditional property funds. Both should be considered carefully, as they require the deployment of long-term capital. Understanding Property and Infrastructure Funds Investors understand that a property fund will invest by buying and letting out properties