(Updated 8th March 2022)
Over many years we have emphasised that it is not our job to be cheerleaders for the investment industry. Our job is, among other things, to bring to you realistic assessments of events which might impact your investments.
Every year Saxo Bank produce their “10 Outrageous Predictions” for the year ahead, which are always thought provoking as well as fun. This year, revolution is the theme – climate change, constitutional crises, inflation shocks, medical breakthroughs creating another 25 years of life expectancy, and more. Each will create uncertainty in their own way.
“I fear the day that technology will surpass our human interaction.
The world will have a generation of idiots.”
Albert Einstein.
Since early May the main UK and European stock market indices and Japan have drifted sideways, Asia ex-Japan is down about 5%, and China down 12%. The US stock market is up 5%. India is a surprise winner, up nearly 10%. That’s it over the last 3 months, a bit of a party-pooper after the prior 6 months.
Since November 2020 we have been like a stuck record highlighting the opportunities and advances in the UK. It isn’t us being parochial – far from it.
There is much which is positive and encouraging.
Last year was difficult, extreme, and tragic, in so many different ways. Yet, as observed in our recent monthly commentaries, there is growing investment confidence in the UK, albeit from very low levels.
At the end of the last blog (“UK World Beating – seriously!”) I promised that this month the US investment mania would be covered off. Well, the US is an asylum which just keeps giving, as evidenced in just the last few days, and that is unlikely to change through the coming year.
“Doubt is not a pleasant condition, but certainty is absurd”
Voltaire in 1767
Confidence is a vital, perhaps THE vital, driver of markets. As I write, there is evidence that confidence in the UK stock market is rising.
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