It may be a bumpy ride but sit tight, don’t panic

IT has been a chastening few days for those with money invested in the stock market. Equities worldwide have reacted badly to a potpourri of bad news – trade wars between China and the United States, economic slowdown in mighty Germany, a crashing peso in Argentina, and signs that the world economy may be on the cusp of recession.

For investors with money in shares and investment funds, the temptation will be to bale out before matters get worse. But investors should not act in haste.

Instead, they should draw breath, sit back and review their investments, and then assess whether they are sufficiently diversified in terms of number of holdings, asset classes and geographic spread.

Tinkering is fine, as is crystallising profits. But investment winners are invariably those who think long-term, stay in the market through thick and thin, and keep squirreling money away.

CHALLENGER bank Metro has had its problems this year – big accounting errors, corporate governance issues and a sliding share price. Issues that at one stage threatened to destabilise the business as customers withdrew their savings, emptied their safe boxes, and ran for the hills.

Although the bank is not yet quite out of the mire – it is still being probed by the Financial Conduct Authority – it has not been deflected in its determination to deliver quality customer service. A trait that stands it apart from many rivals banks whose branches (if not closed already) are usually soulless and about as welcoming as a frozen Serpentine for swimmers in London’s Hyde Park in the dead of winter (yes, I’ve experienced it, never again).

While some may sneer at Metro’s branch eccentricities – free lollipops and pens (targets for savvy school children) – the fact is that its staff do genuinely seem to want to help. It is a point picked up in the latest survey conducted by the Competition & Markets Authority into bank customer satisfaction levels.

When it comes to personal banking services, the authority says customers vote Metro the top, followed by First Direct (the slick online banking arm of HSBC) and building society Nationwide. In terms of branch service, Metro comes top again, followed by Nationwide. Bottom of the pile – for both personal banking and branch based service – is Governmentowned Royal Bank of Scotland. So much for the customer benefits of state support – note to Jeremy Corbyn, state control does not work.

Of course, Metro will never truly challenge the biggest banks because it doesn’t have the scale to do so. After all, Barclays has shut more of its branches this year than Metro has opened since setting up in the UK nine years ago.

But at least Metro is in expansion mode (branches 69 and 70 are scheduled to open in Birmingham next month) and investing in our high streets.

So we should welcome it rather than hope it fails (as some do) because it was set up by brash American (Vernon Hill) who has had the temerity to shake up this country’s moribund, faceless and unfriendly banking industry. A BIG thank you to everyone who has given their thoughts on two issues we have been getting het up about – Neil Woodford’s refusal to waive the management fees on suspended fund Equity Income (disgraceful) and the urgent need to reform rules on our right to save into a pension (too much complexity).

As we report in Wealth, Woodford’s bloodymindedness in continuing to charge fees on his broken £3.4 billion investment fund (£65,000 a day) is enraging investors who feel betrayed, let down and ostracised.

The fact he won’t speak to anyone caught up in this sorry affair other than a powerful band of sycophantic financial advisers – who he is banking on for their continued support through the fund’s suspension – suggests three things.

One, he is supremely arrogant. Two, he’s lost the plot. Three, he’s receiving some of the worst public relations advice ever given.

We shall keep the spotlight shining on Woodford until he sees sense and turns off the fees tap on Equity Income.

If you feel like venting your spleen on Woodford or pensions, feel free to do so. Email me at the address below.