It was almost inevitable, but we are now dealing with ‘lockdown’ round 2. Just as things were beginning to return to some vague kind of normality, the virus has staged its resurgence and more restrictive measures are being introduced.
The timing of Boris’s announcement was almost comical for the Buckingham Gate team – our builders signed off the first phase of our office building project on Tuesday morning and ‘handed back’ the office to us and then the ‘work from home’ message came on Tuesday evening.
I would like to reassure clients that our commitment to getting back to the office (and to face-to-face meetings for those who want them) is unwavering. We have spent considerable time, money and effort re-designing the Buckingham Gate office and client experience and we can’t wait to show you the fruits of our labour – we will just have to wait a little longer until the government guidance and health crisis allows.
We have started doing a small number of home visits with clients where this is necessary (the signing and witnessing of wills and trusts for example) and will continue to offer this service, with all the gloves, masks and other mitigation’s in place, for as long as we are permitted to do so.
As we enter the colder, darker months I think this is the point where the economic pain might start to become more visible. Up until now, although both people and businesses have undoubtedly been struggling, there has been a very significant element of government support with the furlough scheme, grants, loans and handouts galore.
All of that is about to change. While the announcements from Rishi Sunak last week will be welcome, the schemes being introduced to take us through the winter are nowhere near as generous as the ones that they are replacing.
The Furlough scheme paid up to 80% of a workers whole wage, the new scheme will pay only around 20%. The same is true for the self-employed scheme, with the grant available now only £1,500 for a 3-month period – Just £500 a month to survive on!
The sectors most impacted by the new restrictions (hospitality, travel etc) make up a reasonably small portion of the stock market in relative terms, but they do account for a large percentage of the workforce. As such, I think any impact on markets will be due more to waning consumer confidence, rather than down to the fortunes of the companies themselves.
The companies that have accounted for much of the stock market growth and recovery we have seen this year (mainly the large technology giants) will most likely continue to perform well in this environment as our demand for their devices and subscriptions grows ever larger.
We will, of course, be monitoring developments carefully, not just with Covid-19, but also with the Brexit process and the US Elections (two events that would nearly account for all of the headlines in any normal year, but that we are hearing relatively little about vs Covid).
Most importantly, I want to reassure clients that we are here for you. Our mission is to create financial peace of mind for each and every one of you and if there is anything more we can do to help you achieve that, even in these most unusual of times, please don’t hesitate to ask.