Markets will reward patient investors – Stanes

Markets will reward patient investors – Stanes

The current low interest rate, low-growth environment means investors have to be patient, according to the investment director at Heartwood Investment Management.

Michael Stanes said investors were increasingly challenged in their search for income and return.

This was illustrated by recent analysis by Bank of England chief economist Andrew Haldane, he said.

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In February this year, Mr Haldane questioned whether the global economy was sitting on the cusp of a period of secular innovation or secular stagnation.

However, Mr Stanes said: “We have been through a six-year bull market, which has been increasingly driven by the momentum trade of late, particularly in the US.

“The current environment warrants the return of the patient investor, and Mr Haldane’s analysis reminds us to search deeper for underlying trends and inflection points.

“Our view remains that we are in a normalising interest rate and growth environment and it is important to look through the short-term noise and uncertainty, but nonetheless be cognisant of potential risks that may unfold along the way.”

Adviser view

Kevin Morgan, managing director of Hertfordshire-based Consilium Financial Planning, said: “Investors need to be patient but they have always had to be, so there is no reason to panic.”