5th July 2018

As we sit amidst football mania and the build up to the World Cup Final, it is hard not to draw some comparison with the long running Brexit news feed.

Despite the media frenzy around every comment we can only think that the final negotiations will turn into a ponderous climax rather than a thunderous bang.

Financial markets, investment managers and economic leaders all seem to have a reasonably settled outlook.

There will be changes and periods of turmoil but there are several positive indicators.

Globally, countries are still showing positive economic growth and there is very little in the way of signs of ‘overheating’ economies.

Interest rates will likely increase slightly, but there is headroom for equities and other asset classes to absorb this increase and match it in terms of additional returns.

Europe also appears to be on a more stable platform. There is no appetite by the EU political leaders to disband or move away from the Euro. In reality they have moved closer together, swiftly overcoming the recent wobble in Italian debt and bonds caused by the elections.

The EU stability is a positive for the UK economy as uncertainty in Europe has a knock-on effect on banking, businesses, exchange rates and the Brexit negotiations. For example, negotiations become harder when surrounded by unpredictability.

The past few months have seen investments return to growth and we envisage this continuing for the immediate future.

One theme that has become evident over the past couple of years is how unpredictable global events can affect overly focused portfolios.

For this reason, we have recently decided to take a more proactive approach using varying strategies on a global theme, using different strategies, asset classes and investment funds.

These changes are gradually being fed through to our clients’ portfolios and this will continue as we move forward.

Contact us should you have any queries or worries. Our team are always happy to have a chat. Whether it is a review driven by concerns in financial markets, a change in legislation or simply an alteration in your situation or priorities, please contact us.