Our Views on the Markets and the Economy
Articles, investment updates and economic analysis
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Successfully managing modern investment portfolios means expertly navigating an evolving set of challenges. Our key beliefs help to guide us when volatility is elevated, when the impact of policy actions is uncertain and give us the agility to respond as the fundamentals change.
UK investment assets are typically affected by local and global factors, often being particularly influenced by events in the US. As we now approach the UK general election, however, let’s examine the potential impact of this national event on UK asset prices.
The price of gold increased sharply in the last few months, with many factors being attributed for its rise, before falling back almost as abruptly. We look at the different reasons that can cause its price to climb, highlight our own holdings and explain why we think it has merits as part of a diversified portfolio.
A common goal among investors (and indeed investment providers) is to assess how a strategy is doing compared to competitors. Sometimes like-for-like comparisons are not so easy to attain, yet when you find an indicator that regularly proves its worth, it can greatly help investors to decide what level of risk and what investments are appropriate for them.
The last few weeks have seen dramatic developments in financial markets. After a prolonged period of monetary policy tightening in the US, UK and euro area there has been a marked shift in both sentiment and market pricing. The markets now think the next moves in policy rates will be down. While we expect policy rates to fall next year, we believe that markets may be premature in expecting immediate interest rate cuts; after all the Federal Reserve, Bank of England and the European Central Bank all remain cautious about easing when inflation is still above target. Nonetheless, it is fair to say that this is an inflexion point for financial markets.
Our investment approach is central to how we help clients achieve their goals. And although we mainly invest in passive funds and ETFs, a successful outcome very much relies on the active implementation of our ideas, analysis and convictions.
As we approach the half-way stage in the year it’s perhaps timely to review what’s happened in investment markets recently, and to look at the topics portfolios will need to address in the months ahead.
Not since the great financial crisis (GFC) of 2007-2008 has so much focus globally been on the stability of banks and their ability to repay depositors and investors. Our chief investment officer, Iain Barnes, answers some of the questions investors may have about the current situation and what it could mean for investment portfolios.
While 2022 was undeniably challenging, there are many opportunities this year and beyond if investors are prepared to be patient and discerning. A few themes and topics stand out as being potential key drivers of returns in 2023.
Rarely do events in financial markets lead the main evening news. This highlights the magnitude of UK bond market volatility and sterling’s fall in the past few days, and underscores how important it is for investors to be aware of the consequences and to be prepared.
Team Contributors
Gerard Lyons
Charlotte Ransom
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I’m 68 and retiring soon. How can I limit taxes when I take out my pension?
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“How do I get the highest return taking the lowest risk on my £540,000 pension?”
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How can I protect my retirement savings and should I be using a trust?
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“I’m worried about the fees on my £600k pension pot. Are some costs being hidden?”
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Wealth management uncovered – clients will be the winners and it’s long overdue
Thomas Salter
Iain Barnes
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In The Press
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Read what the press have to say about Netwealth