Fiducia Wealth Management
Posted in Investing, Webcasts on 23.01.14

 

Taking a broader look at 2013, equity markets performed particularly strongly in the developed world with rises of around 20-30% in tandem with moderate inflation and reasonable underlying growth. Quantitative easing also continued allowing markets a degree of flexibility, as well as the large South East Asian economies (in particular Japan and China) showing reasonable preference for reform into the new year. All of this vindicated Fiducia’s earlier actions in 2012 whereby portfolios were adjusted in anticipating of resurgent markets and increased rewards for risk taking.

In 2014, though current general expectation and economic figures appear positive, there are noteworthy factors on the downslide. Given the forward looking nature of markets, we may see slowing growth momentum as we move into the coming years, due to the structural reform and austerity both dampening the potential for growth resurgence and creating general market pessimism.

Further policy adjustments such as the tapering of Quantitative Easing will also play a part. This monetary policy strategy is likely to continue with interest rates at historical lows in the short term, as central banks will not wish to jeopardise fragile economic growth or increase the debt servicing burden on governments. Longer term it is likely we will see rates normalise, the effects of which are uncertain.

To take an even longer term horizon of around 10 years; of the 52 largest economies only 20 are expected to grow by more in the next 10 years as in the previous decade, which stems from both the current demographic trend of ageing populations and the need for government debt relief in the coming years.

All of these factors mean that looking ahead, the underlying risk/return trade-off is likely to deteriorate in the coming years and Fiducia will look to adjust portfolios accordingly. As such the asset composition will need to be dynamic and may accommodate portfolio diversifiers, such as infrastructure and property to a greater extent.

If you would like to know more about how we as Financial Advisers can help you  with your Investments then visit the Investment Management section of  our website: Investment Management or send us email at: email@fiduciawealth.co.uk

The information contained in website is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occasioned in connection with the content hereof and any such action or inaction. Professional financial advice is necessary for every case.

Fiducia are an award winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border. www.fiduciawealth.co.uk

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority. FCA No. 408210

Fiducia Wealth Management
Posted in Investing, Webcasts on 23.01.14