Why the next recession will test your financial plan
We’re overdue a recession. Based on the typical length of an economic cycle, it’s reasonable to expect a recession sometime soon.
Throw some current affairs into the mix; Brexit, the US/China trade war, and everyone getting stroppy with Iran, and that recession could be triggered fairly soon.
When the next recession comes, it looks set to be an ‘interesting’ experience.
Since the global financial crisis, much of the recovery in developed economies has been fuelled by artificial money, pumped out by central banks. So the next recession could be deeper and more sustained than any seen before, with a significant impact on capital markets.
In this episode of Informed Choice Radio, why the next recession will test your financial planning and what you can do about it.
Personal finance news
-The water regulator, Ofwat, has published plans to cut the average water bill in England and Wales by £50 between 2020 and 2025. Their plans would also result in water companies investing an additional £6m a day in improvements to services.
-Detached properties in London fell in value by more than £50,000 on average in the past year. Land Registry figures show the average value of a detached London home fell by 6.1% from £903,088 last May to £847,998 in May 2019.
-One in seven adults in the UK have admitted to committing one or more types of consumer fraud in the past year. The report by fraud prevention service Cifas found the most common form of fraud was ‘fronting’ on car insurance for younger drivers, with ‘deshopping’ following closely behind.
-Global economic confidence fell in the second quarter, according to a new survey from the Association of Chartered Certified Accountants and Institute of Management Accountants. The global poll of 1,162 accountants shows that confidence remains above the record low reached at the end of 2018, consistent with a modest global economic slowdown.
-The Office for Budget Responsibility has warned that public borrowing could double next year, if there is a no-deal Brexit. The spending watchdog warned borrowing could rise from £29.3bn to almost £60bn if there was a no-deal Brexit at the end of October.
