We have published our latest Investment Outlook for the first quarter of the 2013.
We publish this document once a quarter to record the conclusions of our formal Investment Committee process.
This process puts us in a very strong position to make tactical asset allocation decisions to exploit short term market conditions and any associated investment opportunities.
We begin the year with investors in a jubilant mood after US politicians reached a last minute deal to avoid their ‘fiscal cliff’ and the FTSE 100 index of leading UK company shares pushed through a resistance barrier to exceed 6,000 points.
The investment outlook for the year ahead appears more optimistic than it was this time last year, although risks to investors remain in place with fragile economic outlooks and the need for further central bank intervention in order to avoid recession.
The Eurozone sovereign debt crisis is not currently the focus of investors, but remains largely unresolved, as highlighted by the resignation of technocrat Mario Monti from the post of Italian Prime Minister last month after failure to agree on important budget measures.
We expect events in Europe to continue to influence investor sentiment, albeit hopefully to a lesser extent than before.
After another strong performance in 2012, investors will consider the risks associated with holding corporate bond assets in their portfolios, with fears expressed towards the end of last year about a possible ‘bond bubble’ driven by historically low yields on gilts, supported by the Bank of England programme of quantitative easing and other factors.
What investors will need to ensure as we start the New Year is that their investment portfolios are correctly positioned to meet financial objectives and kept under regular review as we progress through the year and conditions change.
You can download our latest Investment Outlook report here:
Informed Choice Investment Outlook Q1 2013
