Despite ongoing concerns regarding inflation, high interest rates and slow economic growth, global equity markets posted strong returns this year (to October end).

The much-feared correction due to the global elections failed to materialise, either from Sir Keir Starmer’s Labour Party roaring to election success here in the UK or Donald Trump’s political comeback to become the next president of the United States of America.

The conflicts in Ukraine and the Middle East also failed to halt global markets. Even the UK Budget did not hamper the small progress UK equity markets have made this year, with the recently proposed Capital Gains Tax and Inheritance Tax changes. See our separate budget piece for the specific detail of what has been proposed and whether it will impact your finances.

What the remainder of 2024 and beyond holds for investors…

The political and geopolitical events of this year will undoubtedly have some impact on future economic growth, inflation and interest rates. Once the dust settles, we are confident that the long-term drivers of equity and fixed income returns will remain in place and prevail.

We expect the conditions will be favourable for our asset classes and underlying investments. Inflation and interest rates may settle a little higher than we had originally anticipated but the direction of travel remains, and this year’s political changes will not knock this off course.

We remain disciplined and optimistic with our long term investment approach and expect to benefit from the equity market drivers broadening out across different sectors and market capitalisation.

Any Questions? – If you want help or advice on the best options for you, speak to the team here at Raymond James, Hitchin.