As another year draws to a close, we reflect on 2016 and look forward to a new year.
The UK voted for Brexit, the US elected Donald Trump and Italy’s Prime Minister resigned. We have seen the pound crash to a 31-year low against the US dollar, US stock markets have hit record highs and China continues to devalue the Renminbi.
In 2017 – we will have elections in France, Germany, Netherlands and possibly Italy. Trump will move into the White House and Britain will commence Brexit negotiations by March 2017 at the latest.
Although we cannot predict the future, these challenges could feed through into asset price volatility. With interest rates so low, we also feel that equities provide the best long-term value for your capital.
However, recent events remind us of the importance of continuing to have regular discussions with your financial adviser. CWM review your approach towards investment risk, fund selection and asset allocation and rebalance the portfolio where necessary, to take advantage of any volatility. CWM’s advisers will be monitoring developments throughout 2017 and look forward to supporting our clients.
Best Wishes from CWM