Financial markets and stocks and hares could see a “sharp downturn” if investors start to reconsider the prospects of economic recovery from the lockdown amid supply problems, rising prices and a spending squeeze, the Bank of England predicts.

The UK’s central bank's financial policy committee (FPC) warned of a “correction”, defined as a drop of at least 10% in the price of a share from its most recent peak. The bank has seen signs of increased risk-taking at investment banks – the people who get paid huge sums to play with other people’s money at the stock market casino!

Stock indexes around the world have hit record levels this year, from a crash in 2020, as investors bet on a strong economic bounce back from the pandemic.

However, worrying levels of inflation have returned to the UK, US and Germany sparking fears that growth could be stunted in the face of supply chain bottlenecks, soaring wholesale natural gas prices and skills shortages.

In the UK, millions of households and businesses are facing a long winter of discontent from a cut in benefits and state support combined with a surge in energy prices not seen since the 1970’s Arab oil crisis which sent economies across the globe into recession.

The Bank is also concerned that higher borrowing during the public health emergency has likely put more businesses at risk.

It said: "The increase in debt - though moderate in aggregate - has likely led to increases in the number and scale of more vulnerable businesses.

"As the economy recovers and government support, including restrictions on winding up orders, falls away, business insolvencies are expected to increase from historically low levels."

Around 1.7 million companies borrowed money under emergency loan schemes, like the bounce back loans, that were launched last year.

Many of them were very small companies without high debt, but desperately needed of cash to avoid immediate collapse. Source Sky News.

China’s debt and real estate bubble has not gone away, with Evergrande and Fantasia expected to default on more upcoming debt repayments.

How can you protect yourself and profit from a stock market or property crash? 

Even if you do not directly invest in the stock market or property your pension fund manger may be doing so on your behalf.

If you would like to learn more about investing and managing your money, become a professional property investor, or would like tobe financially free without working any harder, watch this free on demand training.

I will give a special free gift which can help you to immediately transform your finances when you attend the online training.

Click on this link to watch the free training now https://bit.ly/3wLWqx2 

Book now as spaces fill up fast...

#evergrande #chinacrisis #realestatebubble #property #stockmarketcrash #inflation #financialeducation #freetraining #evergrande #chinapropertybubble #pension #drivershortage #bankofengland

Financial markets and stocks and hares could see a &ldquo;sharp downturn&rdquo; if investors start to reconsider the prospects of economic recovery from the lockdown amid supply problems, rising prices and a spending squeeze, the Bank of England predicts.
The UK&rsquo;s central bank's financial policy committee (FPC) warned of a &ldquo;correction&rdquo;, defined as a drop of at least 10% in the price of a share from its most recent peak. The bank has seen signs of increased risk-taking at investment banks &ndash; the people who get paid huge sums to play with other people&rsquo;s money at the stock market casino!
Stock indexes around the world have hit record levels this year, from a crash in 2020, as investors bet on a strong economic bounce back from the&nbsp;pandemic.
However, worrying levels of inflation have returned to the UK, US and Germany sparking fears that growth could be stunted in the face of&nbsp;supply chain bottlenecks, soaring wholesale natural gas prices and skills shortages.
In the UK, millions of households and businesses are facing a long winter of discontent from a cut in benefits and state support combined with a&nbsp;surge in energy prices not seen since the 1970&rsquo;s Arab oil crisis which sent economies across the globe into recession.
The Bank is also concerned that higher borrowing during the public health emergency has likely put more businesses at risk.
It said: "The increase in debt - though moderate in aggregate - has likely led to increases in the number and scale of more vulnerable businesses.
"As the economy recovers and government support, including restrictions on winding up orders, falls away, business insolvencies are expected to increase from historically low levels."
Around 1.7 million companies borrowed money under emergency loan schemes, like the bounce back loans, that were launched last year.
Many of them were very small companies without high debt, but desperately needed of cash to avoid immediate collapse. Source Sky News.
China&rsquo;s debt and real estate bubble has not gone away, with Evergrande and Fantasia expected to default on more upcoming debt repayments.
How can you protect yourself and profit from a stock market or property crash?&nbsp;
Even if you do not directly invest in the stock market or property your pension fund manger may be doing so on your behalf.
If you would like to learn more about investing and managing your money, become a professional property investor, or would like to be financially free without working any harder, watch this <a href="https://charleskelly.clickfunnels.com/phase-2-vsl-funnel-2020-latestvh98rpn3">free on demand training</a>.
I will give a special free gift which can help you to immediately transform your finances when you attend the online training.
Click on this link to watch the free training now <a href="https://bit.ly/3wLWqx2">https://bit.ly/3wLWqx2</a>&nbsp;
Book now as spaces fill up fast...
#evergrande #chinacrisis #realestatebubble #property #stockmarketcrash #inflation #financialeducation #freetraining #evergrande #chinapropertybubble #pension #drivershortage #bankofengland

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.  Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.  Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.   For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.&nbsp; Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.&nbsp; Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation. &nbsp; For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips Podcast

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. 

Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business. 

Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.  

For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Advertisement