Investment Market Update - January 2021

Welcome to the first edition of our Investment Market Update for 2021.

Despite the extraordinary scenes in the Capitol Building, we are using this Market Update to give you our views on where markets, and your portfolios, might go in 2021.
 
With the Brexit deal being finalised in the Christmas week, markets bounced and all of our Portfolios had a good month. Somewhat inevitably, Passive portfolios underperformed. 

The main topics in our bulletin are the Five Pillars where we think the shape of 2021 will be formed. These are:

  • Economic Activity and how that grows on the back of vaccination.
  • Fiscal and Monetary Policy and the continuance of support of markets from Central Bankers.
  • Inflation; expectation is that it will remain low, but shocks may create tremors in markets.
  • Market Valuations. Hard economic activity needs to increase to support these highs.
  • Future expectation of return. The UK looks good amongst its peers.

The health of the world has never been so critical, and a return to good health on the back of the Global vaccination programme will lead market direction in 2021.

To find out more, read our full investment market update.

Investment Market Update - Download here

If you have any questions relating to the content of the article, please contact us. We are here to support you.

Note: This Market update is for general information only, does not constitute individual advice and should not be used to inform financial decisions. Investment returns are not guaranteed, and you may get back less than originally invested; past performance is not a guide to future returns.