We have never tried to be crystal ball gazers but, one thing is for certain, we are in for a bumpy ride. In the last twelve months we have seen two or three sharp downturns in markets, followed by reasonably good recoveries. Over the last 20 years the investment landscape has followed a similar road. Brexit means many things to many people and we all made our choices. For investors the next two or three years can only mean one thing and that is further volatility. With this comes opportunity, perhaps risk, perhaps both. Our advice regarding investments has always considered timing, time in the market and your longer term objectives. Interest rates and currency risks are always going to be factors. Panicking when markets fall or waiting until markets have peaked to add to your wealth are rarely good investment strategies. But, as stated, we are no crystal ball gazers so getting the timing right is of course extremely difficult. Your age and when you need money out of your investments will determine very much how long you need to stay in the market for. Your taxation status and your level of income is also extremely important. This applies in spite of Brexit. Whether it is Trump or Clinton in the US or whether we leave the EU within the next two years will effect markets, but it is your personal circumstances that will determine how to react. If your time in the market is expected to be short, don’t do it. Take advice and speak to Greaves West & Ayre Wealth Management.
Stuart A F Faed