Middle Eastern investors have been cautious on risk for a while. I believe that if markets remain relatively calm, many will be tempted to deploy more cash.
While our forecasts for 2018 follow a similar trajectory to 2017, a healthy dose of potential risk lurks in the shadows. For a different take on the Asset Allocation team’s outlook for next year, here’s an insight into the regular debate at our team meetings in the first of a three-part series focusing on our discussions on each of the three Ps of politics, policy and (market) peaks.
A week is a long time in politics, as Harold Wilson famously said. So one can only imagine what he would have made of the past year in which the UK has voted for Brexit, changed Prime Minister, triggered Article 50 and held a general election. And while the political saga has been going on, the effects on the UK economy are only just starting to appear.
Sterling-based investors face the additional uncertainty caused by the Brexit vote alongside the usual vagaries in markets. When in doubt, it can be tempting to extrapolate recent performance, however today that could prove unwise.