As British citizens, this millennia has forced upon us some of the cruellest, life-changing dilemmas we could have imagined. It’s reasonably safe to say that we’re all pretty dismayed with the last few hands we have been dealt with.
We’ve come through national problems affecting our health, family, jobs, global standing, reputation, financial freedom, political discourse and our identity, to name a few. We’re enduring this pandemic, and have, for the most part, done our bit. But what happens now?
Since June, the gears of the UK economy has been greased and put back on a ‘roadmap to recovery’. Interest rates have dropped, a prospect I’m sure Andrew Bailey never envisaged for his first few months in charge. We have a gradual release plan to get us back to work and restart the economy. For the remainder of 2020 it’s looking increasingly likely that the UK GDP recovery will depend on the boost in local trades and such like.
Many British businesses will struggle to envisage any ‘roadmap to recovery’ helping them significantly enough.
Even where Avantis are based in Brighton, there is a clearly fear for what the future holds for such a wonderfully diverse hub of independent enterprise. We have a string of local retailers who are reliant on public spending and government schemes such as the eat out to help out which has now been ended, with the desperate hope of a return to support the quieter winter months.
It’s therefore important that those who can afford it, do what they can support UK businesses, in whatever capacity.
In 2019, Amazon made £10.9 billion in revenue from the UK. They paid £220 million in tax. This is just shy of 2%. If they paid 20% tax, that equates to £2.1billion and would have more than covered a huge amount of business relief support. For too long the British consumer has voted with their feet, away from the high street at a drop of >1% annually and into the arms of one global business.
One thing is for sure, things move very quickly now and knowing what is going to happen in one or two months is a challenge, making personal investment decisions over 5+ years a significant risk.
For those that do not know Avantis Wealth, we are a Hove based company helping UK businesses raise capital to fund their ventures. As part of the process, we talk daily with investors who are looking to make judgement calls on the future performance of individual British businesses and industries. There is usually concern about the unknown and what the future might hold. I would argue that as investors, you have more control over the outcome of this pandemic than we think. Without people making the leap and investing their hard-earned money, there is no more grease for the wheels, and we are in serious trouble.
In the past, investors have often committed to longer-term investments of around 5-10 years in exchange for higher returns. Savings institutions consistently offer 3 and 5-year terms as well as the shorter versions. The theoretical benefit of longer-term is that the rate will be higher, in return for you locking up your money for this extended period. That is mostly true.
It is also possible, as demonstrated by the Avantis Wealth portfolio of investments, to receive +10% p.a. on short term investments of 12-36 months.
Short term investments allow investors to reassess their position and cash needs more frequently, something that is becoming ever more important. The benefit of which allows for an ongoing strategic adjustment of an investor’s portfolio.
As our society emerges from the shadows, slightly plumper and dishevelled, we will continue to need to support our smaller businesses. If that means putting down the Amazon App for a few months, then so be it.
To find out more about how to short term investments call us on 01273 447299 or register on the website to access full investment details.