In looking at the current political and economic situation and outlook I can’t help that feeling of Groundhog Day.
For those not familiar with this film from the early 90’s, it stars Bill Murray as a self-interested weatherman condemned to repeat the same day over and over until he finally learns to change his approach.
Brexit continues to dominate the UK political outlook and news as the stalemate continues. In the meantime, the rest of the world has continued to trade.
There have been some bumps on the global trade front with the US & China but this hasn’t so far significantly derailed economic growth or financial markets. As I write this both the US and China have announced additional trade tariffs.
Whilst these announcements immediately cause jitters in the various stock markets, they appear to settle fairly quickly and return to steady, if not spectacular growth.
As mentioned in my last update, there are signs appearing that investment markets have taken Brexit and the ‘tit for tat’ actions of the US & China into account. Fund managers are generally looking ahead with a positive outlook over the longer term.
In the short term there is likely to be some volatility, much of which could be caused by reactionary changes in currency exchange rates, but we are confident these fluctuations will even out over the medium term.
From an investor perspective, for our clients, I do not feel there need be any particular cause for worry or concern.
Almost universally, as active clients of Platinum, you are in well balanced and diversified portfolios.
The stock markets do obviously have an impact on volatility and can cause the occasional drop in value, but long term the prospects for growth are undeniable. Patience is the focus, letting investment portfolios recover from any short-term dips in value will be important going forward.
As always, contact us should you have any queries or worries. Our team are always happy to have a chat.