Advisers focusing on investments could find their clients exposed to market turbulence from other parts of the world, a senior economist for Aviva Investors has warned.
Stewart Robertson said that although the UK economy had good prospects for the future compared to other countries, it could suffer if recent global volatility continued.
The FTSE 100 opened on Tuesday 21 October at 6,267, off its 52-week peak of 6,904.
He said: “Along with the US, the UK has the brightest outlook among the developed nations with most indicators arguing for a continuation of robust growth and low inflation.
“The first interest rate rise is not likely until next spring, when slow and gradual rates are expected, with the terminal rate dictated by how the economy responds to the first monetary tightening for eight years.”
But he added: “The UK is far more exposed than the US is to Europe as its most important trading partner, so weakness there will be felt here.”
Adviser view
Ben Gutteridge, head of fund research for National advisory firm Brewin Dolphin, said: “We have seen equity markets recover sharply, ending the week down 1 per cent in Europe and the US – not a bad result given the mid-week panic.”
