James Coney  

Dashboard potential could be squandered

James Coney

James Coney

That really would something to get excited about.

Cheap option

The sentiment gap is that gulf between what investors are doing in the markets and what the statistics actually tell us.

The gap at the moment reveals how money is pouring out of UK funds and into US, global bond and Asian funds.

This is all Brexit, and people being driven by the fear that, deal or no deal, the UK will suffer.

Valuations tell you something else. Since 2016 a significant gulf has opened up between the free cash flow yield spread of the FTSE 100 and the S&P 500, with the UK now looking exceptionally cheap.

We have had £13bn of net outflows now since the referendum in 2016.

Investors should know there is little to fear and that good habits do not change just because of the political climate. It is worth hammering home these fundamentals again and again.

Flexibility rules

Whether we get a Budget or not on November 6, the chancellor should put high on his agenda a new principle: listen to the Office for Tax Simplification.

It has now produced paper after paper on sensible reforms: from business taxes, to inheritance and child benefit. Rarely do its proposals make it into policy.

When it comes inheritance and gifting money down the generations, we need greater flexibility in the tax rules. That is the only way to encourage sensible financial planning.  

James Coney is money editor of the Sunday Times