Over the past year, our vulnerabilities have been starkly exposed by coronavirus, and the pandemic continues to present an array of challenges on many different levels. Economic frailties have also been laid bare but, as we enter a new year, shoots of optimism are beginning to emerge, with rising hopes of recovery in 2021 and beyond.
A Gradual Recovery • The International Monetary Fund’s (IMF) final 2020 assessment of global economic prospects was entitled ‘A Long and Difficult Ascent’. This provides an apt description of the current situation, with the international soothsayer’s predictions pointing to a moderate rebound in 2021 with a continuing gradual recovery over the following few years.
Reasons to be Cheerful • While the IMF forecast does highlight continuing risks and uncertainties, which largely centre on the future path of the pandemic, there are reasons for some guarded optimism. Continuing progress in the search for COVID-19 vaccines and the economic stimuli promised by US President-elect Joe Biden, for instance, should both have a positive impact on market sentiment during 2021.
Look to the Future • Whatever the future holds though, the key to successful investing will inevitably remain embracing a long-term philosophy that is based on sound financial planning principles. In practice, this means maintaining a diversified investment portfolio which suits your attitude to risk and resisting any urge to panic trade. It also means looking forwards, focusing on future key trends and longer-term investment themes.
Advice Remains Paramount • Another key component for investor success will undoubtedly be the provision of expert advice and the construction of a tailored plan setting out realistic and achievable financial goals. Indeed, given the heightened market turbulence and uncertainty, it has arguably never been more important to obtain professional financial advice. So, get in touch and we’ll help you navigate your way through the opportunities and challenges that emerge as the new year unfolds.