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Limiting the shock: adjusting personal finances to market turmoil

Ructions mean pain, say wealth managers, but overseas investments and rising deposit rates can bring relief

Most British investment managers spent last week pinned to their screens, watching the impact on their funds of the UK market turmoil. But one executive at a British funds house spent the week poolside in Dubai, fretting about his hotel bill.

“I was watching my holiday get more expensive by the day,” he said. But his own worries about the upheaval in sterling were overwhelmed by the scale of the financial crisis gripping London. “This really is one where we probably won’t see something like this again in our careers.” 

Although the pound and government bonds have bounced back from lows after a huge £65bn intervention from the Bank of England, the market ructions that followed prime minister Liz Truss’s “mini” Budget will impose lasting pain, according to wealth managers.

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