What can we expect from 2017?
We power through the first busy couple of months of the New Year. With January and nearly February in the rear- view mirror, it seems appropriate to ask what we might expect next. Has the outlook to a new year ever looked so uncertain?
2017 has plenty more surprises in store for us all I’m sure. The odds now seem stacked in favour of March being the month when Article 50 is likely to be triggered. Thereby, formalising the process of our withdrawal from The European Union – the ramification of which, still remain unclear. The growing strength of nationalist movements in the Netherlands, France and Germany ahead of their elections this year; and renewed rumblings from Greece and Italy are cause for concern too and beg the question, should we remain confident that the gains seen in recent years from markets will continue? A clearer view of how the new Trump administration will develop should emerge, although the initial indications would appear to be clear enough. The US markets are choosing to believe that Trump will deliver on all the good stuff and conveniently renege on all the stuff they don’t like.
Inflation looming
There is also evidence to suggest that the spectre of higher inflation may be looming. The price of oil has nearly doubled from this point last year and as if in confirmation, the bond markets appear to have peaked in late 2016. Typically, with inflation comes a rise in interest rates and after almost eight years of record low rates this is an uncomfortable thought. To paraphrase Jacob Rothschild in the late summer of 2016, we are all living through the greatest experiment in monetary policy in the history of the world. It is at times like these that an element of caution should prevail. History supports the fact that judiciously feeding money into the markets and pound cost averaging techniques can help massively dampen price volatility in markets and also helps to protect the gains that have accrued in previous years.
Experts everywhere are predicting this and warning about that. Mercifully most of these predictions seldom seem to come true. Less mercifully events tend to unfold in a way that still continue to surprise us and find us underprepared. In reality the only predictions we can all safely make are we don’t really know what will happen next.
There are many reasons to remain optimistic. Extreme poverty continues to be reduced globally. Advances in medicine and healthcare means we are all living longer. Indeed, it follows that dementia now poses perhaps the most significant threat to our wellbeing as many more of us live into our ninth and tenth decades as treatments for the old enemies of heart disease and cancer continue to improve. Living longer whilst desirable brings its own set of challenges, not least of all, how will we afford it?
How can we prepare for what might happen next? How best can we protect what we already have?
The answer to this pertinent question is of course always changing… as we are and as our circumstances are. Paradoxically, the only constant in life is change. The most effective way to stay on top of this is strangely quite simple but something we all typically procrastinate about. That is to carry out a process of review followed by a rebalance if necessary. To check that our direction of travel and the route map for the journey is accurate and fit for purpose and that our destinations remain achievable and the pitfalls and banana skins that are bound to encounter on the way are by and large covered off. That we can enjoy the view when we arrive.
It can be hard to place trust in someone with regards your finances and on the surface the costs can seem off putting. However, the benefits are clear. According to recent research carried out by unbiased.co.uk, people who take advice on their pensions have over £48,000 more on average in their pension pot than those who don’t. Also, for some reason women are less likely to seek financial advice than men. The advice in answer to this is clear. Seek financial advice from advisers who are fully regulated, independent and have access to whole of market advice.
We can help you
IEP Financial are happy to help you with your process of review. Please contact us either by phone on 01273 208813 or by email on [email protected]
For more financial information like this and to sign up for our newsletter please click here
Read our other stories here:
Do you as an employer understand your legal responsibility when it comes to Auto Enrolment?
Employees demand more employer responsibility on pensions
What can we expect from 2017 was first published 28th Feb 2017
IEP Financial is authorised and regulated by The Financial Conduct Authority (FCA)
The value of investments can fall as well as rise and past performance is not a guide to the future. The content of this publication is for information only. It does not represent personal advice or a personal recommendation, and should not be interpreted as such. Please do not act upon any part of it without first having consulted an Independent Financial Advisor
