Newsletter 11th of April

Hi Ladies,

It’s fair to say that markets have had a bit of a wobble lately after President Trump’s surprise move to sharply raise tariffs on imports, only to then put them on a 90 day pause after people were getting “yippy”. It’s all big, dramatic jumps, threatening to bring U.S. trade duties to levels we haven’t seen in over 100 years. And it’s caught investors off guard. As a result, U.S. and European and Asian stock markets took a hit, only to make the third biggest rebound since WWII on the news that they would be paused. Bonds have gone up, as people shift their expectations around interest rate cuts and what they might look like for the rest of the year. It might sound dramatic and feel scary, but ups and downs like this are part of the investment journey. Let’s take a look at what else has been happening this week.

Top 5 Market Headlines of the Week

Here are some of the biggest headlines we’ve seen this week that could affect you and your investments.

• ❕ The trade war between US and China ramps up to a new level after Trump increases tariffs
• 🛢️ Oil prices fall as tariff turmoil sparks recession fears
• 🚢 Companies search out crafty ways round damaging tariffs
• 🤑 World’s richest billionaires make at least $135 billion as stock markets rally
• 📈 Bitcoin prices peak and trough in line with stock markets

Sources: Al Jazeera ,  Yahoo Finance , FT , Business Insider , Yahoo Finance 

 Upcoming events

Is your money mindset holding you back, without you even realising it?
Discover how to shift your perspective and unlock new financial potential at our upcoming webinar, “Mastering Your Money Mindset.”

We’re excited to welcome Vanessa Iremiren,  seasoned Wealth Advisor and passionate money psychology advocate, with over 10 years of experience in banking. Vanessa specialises in helping people break free from financial trauma and build a confident, healthy relationship with their money.

This is your chance to gain powerful insights and start making money work for you. Not against you.

🗓 Save the date: April 30th
You won’t want to miss it.

[sign up here]

Little learn of the week

What does the new tax year mean?

We’re officially in a new tax year! 🎉 Let’s take a moment to refresh our minds on what this means for key allowances.

ISA allowance- Everyone has a fresh 20k of allowances that can be made into ISAs, including £4k for the Lifetime ISA.

Pension allowance- You’ve got another 60k, or the total amount of your annual earnings, that you can put into pensions.

Dividend allowance- This has now dropped to £500 for the year that you can earn without paying taxes.

Capital Gains allowance– We’re now at £3000 of capital gains that can be earnt free of tax, after this it is subject to a % of tax. 

Propelle does not provide tax advice. If you want specific tax advice, speak to a qualified professional.

Major indexes & Propelle Funds

Last Week’s Major Indexes

Before we dive in…

Indices are lists of major sections of a market. Basically, they give a gauge of the health of a certain financial market. You’ll see below the value of some major global indices, as well as how much it changed last week, with a percentage.

TBC ON FRIDAY

FTSE 100 (UK): 7,880.87 -2.16%

S&P 500 (US): 5,268.05 -0.46% 

Euro Stoxx 50 (Europe):  4,746.03 -2.37%

Nasdaq (US): 16,387.31 +2.13%

Dow Jones (US): 39,593.66 -1.26%

Accurate as of Friday 11th April 1100

Propelle Funds

We have a selection of funds available on our Propelle investing app, specially selected to be diverse and suitable for a range of investors. Whilst all investing should be considered long-term (with a minimum of 5 years), it can be helpful to understand how each fund is doing. Here’s some notable updates from our Propelle funds.

Blackrock MyMap ESG

The U.S. has cranked up its trade protection game, introducing new tariffs that could ruffle global markets a bit—think more trade tensions, slower growth, and maybe even some inflation creeping in. While it sounds intense, Blackrock have stressed in their communications that there’s no need to panic. The key, in their opinion, is staying diversified and not putting all your eggs in one (American) basket. In fact, this could open the door to opportunities in places like Europe and the UK, where certain sectors and stocks are looking more attractive right now. For those already invested in a BlackRock MyMap ESG fund, this just means your fund managers are likely keeping a close eye on all this and actively adjusting to help navigate the bumps, so you can breathe a little easier.

[check it out now]

If you invest, your capital is at risk and your investments can go up as well as down. Past performance is not an indicator of future results.

Source: Blackrock

Mini Market Deep Dive

What on earth is going on with the tariffs and what are the potential impacts?

What a week. In the last two decades, there have been perhaps two or three occasions that would look similar to what has been seen on the stock market this week. From the announcement of tariffs on an island inhabited by penguins, to plummeting stock markets, to pausing the tariffs (apart from China, who haven’t been spared) to an almighty stock market rebound, investors have been on a rapidly moving rollercoaster. Falling global growth, climbing inflation and companies defaulting on their debt could be some of the consequences faced in the wake of the tariff announcements. Here in the UK, we could also see consequences such as a pause on the likes of the Thames Water takeover, as the current buyer in line is a large US firm. Whatever the outcome, it seems to be that there are very few corners of the world that will be spared from the chaos. 

Source: The Guardian

Fear & Greed

The Fear & Greed Index is a way to gauge stock market movements and investor attitudes. The theory is based on the idea that excessive fear tends to drive down share prices, and greed tends to see share prices rise.

Whilst it’s based on the US, it matters to us in the UK because it helps us understand where general sentiment of the US market sits, which often has very close ties to other global markets and investment portfolios.

It may come as no surprise, given the havoc that has been wreaked from the introduction of Trump’s tariffs, that the Fear and Greed index still sits at extreme fear. As investors are wary of the uncertainty and what’s to come next it could well remain as such for some time. Here’s to hoping the storm passes quickly!

Keep your eyes open for next week’s latest and how these market movements affect your finances and investments.