UK investors in the domestic economy have had a decent ride over the past few years as the FTSE 100 has risen strongly, albeit with a couple of minor bumps along the way.
But what potential headwinds lie in wait for investors in the UK?
Brexit uncertainty, Budget expectations and let-downs and the Bank of England’s monetary policy decisions have combined to create much uncertainty.
Speaking at a presentation in London earlier this year, Ángel Gurría, secretary-general of the OECD, made the point: “The UK is facing challenging times, with Brexit creating serious economic uncertainties that could stifle growth for years to come.”
Fund managers are definitely concerned. “Brexit [uncertainty] is the biggest risk. Not only could higher Brexit uncertainty cause inflation to rise, but also confidence to fall, reducing business investment, and moving some jobs overseas,” according to Azad Zangana, senior European economist at Schroders.
As a result, he suggests advisers should find out from their clients whether Brexit and sterling are primary concerns for them.
This report considers the current economic situation in the UK, the outlook from economists and fund managers, and presents various scenarios for investment advisers to bear in mind when advising their clients.
The feature within the report qualifies for an indicative 40 minutes' worth of CPD. Click in the image field above to begin reading the report.