The BJ effect and the prospects for successful investing in 2020
Firstly, we wish you a peaceful and prosperous New Year.
After three and a half years of parliamentary stalemate, we suddenly have a clear direction of travel for the UK. It is our view that many of us will be surprised at just how much the country can achieve in the year before we finally leave Europe.
The shift from the initial euphoria (and a not inconsiderable sigh of relief) to actually tackling the issues that trouble most people is not easily undertaken.
So, at this point, we have to ask what will our new government actually do, and what effect it will have on our economy?
As far as tourism is concerned, already the Daily Express (where the news is never knowingly undersold) is predicting 37.4M visitors to the UK in 2020.
Set that alongside the government’s intention to encourage investment, introduce lower taxes (or at least not raise them), reduce the total cost of National Insurance, and help smaller companies should result in brighter prospects for businesses and therefore employment.
Our current position?
Is good. Inflation is only 1.82%, and we have the highest employment levels for 50 years. Mark Carney (part of the establishments league of “we are all doomed” forecasters) is leaving, and the cost of borrowing money is as low as it’s ever been.
All of this augurs well over a three to five year period and supports our view that UK based investment funds will at last start to cheer up. (It is worth noting the FTSE100 has been hovering around the same level as it was in the year 2000!)
Global prospects meantime still depend upon the US and China. We cannot look to the EU to thrive. Their 27 member committee, with new leaders at the helm, will struggle to fulfil any of its promises.
Financial conditions are still very poor in Italy and Greece, and the eastern members of the EU are not enamoured with Macron’s attempt to rule the roost.
However, we remain optimistic that with thorough fund research and careful fund selection it is possible to grow investments in 2020 ahead of inflation and therefore preserving the purchasing power of your savings.
We look forward to helping with this task.