Client Blog | Netwealth
This column by Gerard Lyons appeared in The Times on Monday 19th February, 2024.
A common goal among investors (and indeed investment providers) is to assess how a strategy is doing compared to competitors. Sometimes like-for-like comparisons are not so easy to attain, yet when you find an indicator that regularly proves its worth, it can greatly help investors to decide what level of risk and what investments are appropriate for them.
2022 was the year of peak inflation. 2023 the year of peak interest rates. 2024 could be described as the year of peak politics, with seven of the ten most populous nations going to the polls. Thus, politics and geopolitics may never be far from the focus of markets, but at the start of the year attention has been more on monetary policy stances and in particular the speed and scale at which inflation and policy rates may fall in the US.
We can only speculate what 2024 will bring to the economy and investment markets, to society and to our personal circumstances. Some events will happen we don’t expect, some will have a greater impact than we predict, and some things will deliver a milder outcome. Yet there are steps we can take – and habits to embed – to help us better face situations we anticipate, and be better prepared for events which take us by surprise.
The Autumn Statement may or may not have an impact on your finances, yet you may find it an appropriate time to consider your overall situation – and to assess whether you could be doing more to make the most of your money, and on the right path to achieve your goals.
Our investment approach is central to how we help clients achieve their goals. And although we mainly invest in passive funds and ETFs, a successful outcome very much relies on the active implementation of our ideas, analysis and convictions.
The end of cheap money has already triggered significant financial and economic challenges. More are likely. The financial market turbulence of recent weeks is evidence of this. The current market focus is on the rise in long-term bond yields, led by the US and evident in the UK. This is consistent with themes we have highlighted in recent months.
Pension Awareness Week (11-15 September) is a government initiative (supported by Money Helper) to encourage pension holders, or those without a pension, to see if they could be doing more to safeguard their future. Even with a pension, a comfortable retirement is not guaranteed – and there is often more you can do to ensure it is in tip-top shape when you retire.
Our CEO Charlotte Ransom answers a weekly question for readers of the i paper – helping them to better understand their investments and how to effectively plan their finances to achieve their long-term goals. Many of these questions are also highly relevant for Netwealth readers.
You don’t have to be imminently facing retirement to be retirement ready. But you can get a good idea if you are on track to achieve your goals – allowing you to change course or make subtle adjustments to your approach to maximise your future potential.
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