Steering you through challenging waters

Even the most experienced investors are likely to find the current investment environment a challenge, particularly when considering the uncertainties of the post-COVID economy which are so fundamentally different to those faced during the last two years. Opportunities, however, are still available to investors who can steer a safe passage through choppy waters. 

One look at the latest economic forecasts released by the International Monetary Fund (IMF) gives a strong hint of the challenges facing investors. The international soothsayer described the outlook as ‘gloomy and more uncertain’, reducing its global growth forecast to 3.2% this year and 2.9% in 2023, downgrades of 0.4 and 0.7 percentage points from its last predictions in April. 

Risks 

The IMF noted several shocks hitting a world economy already weakened by the pandemic. These include higher-than-expected inflation worldwide which is triggering tighter financial conditions; a worse-than-anticipated slowdown in China, and fallout from the war in Ukraine. The IMF also stressed that risks are ‘overwhelmingly tilted to the downside.’ 

But opportunities remain 

This economic sea-change is a serious challenge to investors. However, while managing portfolios in a high-inflation environment may require a change in course, there are still opportunities to be had. In addition, as has been seen with the pandemic, no factor that affects stock markets lasts forever, so it’s vital to keep a long-term view to negate the risk of impulsive short-term decision making. 

If you want to take stock of your investments, we’ll be happy to help steer you through any troubled waters ahead.