Date31 Oct 2023
The current investment landscape undoubtedly presents a challenge, even for experienced investors, but those who plan for the long term return have the best chance of success. Despite market volatility, there are still investment opportunities worth looking into.
There are a few reasons why an individual looks to invest and the main ones are generally:
However, investing doesn’t come without risks, but a solution built around a diversified and well-managed portfolio certainly provides a strong basis on which to operate.
With this in mind, Graeme Dreghorn, Director, explores some of the current investment trends and tips to help achieve success amid a global economic slowdown.
It can be extremely difficult for investors to keep their emotions in check when there is so much economic and geopolitical noise being reported on a daily basis. But market volatility is normal and investors who hold a well-diversified, risk-appropriate portfolio and stay focused on their long-term objectives, goals and aspirations are historically best equipped to get through such periods.
Setting clear goals and developing a corresponding plan to achieve them is invariably the key to investment success. Although plans may need to be adapted from time to time to take account of changes in individual circumstances or investment goals, having a well-thought-out strategy helps investors deal with unexpected events and remain calm when markets become turbulent.
One look at the latest economic forecasts released by the International Monetary Fund (IMF) gives a strong hint of the challenges that lie ahead. The international soothsayer most recently described the outlook as ‘Near-Term Resilience, Persistent Challenges’ as it set its global growth forecast at 3.0% for 2023, a fall from an estimated 3.5% in 2022.
From a UK perspective, the GDP growth forecast for 2023 is expected to be 0.4% and a further growth of 1.0% in 2024.
The IMF noted the balance of risks to growth globally is leaning to the downside. Further shocks to the global economy from an intensification of the Ukraine war, more extreme-weather events and a slowdown in China’s financial recovery could cause inflation to stay high or rise further.
This economic sea-change clearly presents a serious challenge to investors. However, while managing portfolios in a high-inflation environment may require some change in course, there are still opportunities out there. Defensive investing is a possible route to follow. This involves moving investment into assets which are less at risk from the economy slowing, and ensuring that a portfolio contains a range of asset types, from bonds to equities.
At Azets Wealth Management, we use a range of investments and providers when building a diversified portfolio for our clients. Although, ultimately, your investments will be as simple or as complex as they need to be.
We use whichever solution we feel is the most suitable and which our clients are comfortable with. This may be a simple managed fund, where you are investing a more modest sum. If you plan to make more substantial investments or your needs are more complex, we may use a combination of managed funds or recommend you use a discretionary fund manager. Regardless of the route that we guide you through, we will always consider your requirements first.
For further information on achieving a positive return from investments or to discuss your specific situation, please get in touch with a member of our specialist Wealth Management team or your usual Azets advisor.
The value of your investment can go down as well as up and you may not get back the full amount you invested.
Azets Wealth Management is a trading name of Azets Wealth Management Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS. Company Number 05674020. Incorporated in England. Azets Wealth Management Limited is a subsidiary of Azets Holdings Limited.