News / Views

Follow our regular updates to stay up-to-date with current financial planning and investment issues. We regularly publish press clippings, articles and thinkpieces that we think might be of interest to our clients.

Financial markets have delivered strong returns for investors so far in 2019, reversing the weakness in share prices seen in the final months of 2018. Bond markets have been reacting positively to subdued inflation and declining economic growth forecasts and stock markets have been supported by lower interest rates.

Stock markets have recovered their poise so far in 2019, having ended last year in a nervous mood; the World index declined by over 10% in the final three months of 2018 (see Chart 1 below). Some commentators attributed the setback to concerns over slower economic growth in 2019, which were partly provoked by President Trump’s trade battles.

Stock markets ended 2018 in nervous mood, as the World index declined by over 10% in the final three months of the year. Some commentators attributed the setback to fears of slower economic growth in 2019; these concerns were partly provoked by the disruption caused by President Trump’s trade battles. Brexit-related uncertainties also impacted sentiment in the UK and Europe.

Our investment strategy continues to be based on the belief that the world economy should continue to prosper for the foreseeable future, enabling productive businesses to continue to thrive. We expect stock markets to deliver attractive returns in the medium and long term and our recommended asset allocation still favours company shares.

There has been a growing contrast between the stability of global growth and an increasingly unsettled mood in financial markets in the year to 30 June 2018.

2017 was a benign year for investors, with the ongoing expansion of the world economy providing a supportive environment for share prices. However, so far in 2018, there has been a change in tone, which has predominantly come from the rhetoric surrounding President Trump.

2017 was a benign year for investors, with the ongoing expansion of the world economy providing a supportive environment for share prices. While forecasts for global growth were increasing, there were few indications this could lead to a sustained rise in inflation which would require a material increase in interest rates.

The last year has been a benign one for investors, with the ongoing expansion of the world economy providing a supportive environment for share prices; though forecasts for global growth have been increasing, there have been few indications this could lead to a rise in inflation which would require a material increase in interest rates.

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