 Happy New year And Welcome to 2021
Welcome to 2021. Our world changes so very quickly – so we will endeavour to maintain communication that we feel our clients and consumers will benefit from reading and learning about. We very much continue to state that investors need to consider the long term price of inflation beating risk adjusted investment returns and ‘try’ to see through the shorter term risk asset volatility (as volatility will remain!). Our professional advice has steered our clients through the most volatile of times in 2020, producing exceptional investment outcomes – risk adjusted, we expect 2021 to remain on a bumpy path so it is essential that our clients communicate any changes in personal circumstances so (if required) amendments can be made to portfolios. A common phrase being used is “As the facts change – changes will be needed…” So, help us deliver the best outcomes requesting a review if in any doubt. Summary of recent developments UK On Christmas Eve, with just days to spare, the UK Government and the European Union (EU) put pen to paper on a post-Brexit trade agreement, with the UK politicians voting overwhelmingly to back the deal. The UK government confirmed that a new strain of the Covid-19 virus was sweeping across the nation. Travel bans were imposed by a significant proportion of Europe and the wider continents, including cross-channel trade with France. The backlog continued over the festive period. A post-Christmas review of ‘lockdown’ tiers resulted in a further 20 million people placed into stricter Tier 4. As widely covered in the national media the UK is again entering a national lockdown. The UK Government was set to mobilise largescale vaccination programmes, focusing on a larger proportion of society receiving a first ‘jab’ providing a lower level of protection to a wider audience. Investment markets had become nervous further – which is expected.
US Commentary Congress approved a $900bn stimulus package in the days after Christmas, despite a last minute hold up by President Trump over payment amounts to individuals.
January is going to be a busy month in relation to news flow – with Trump and the Presidency and Covid news Vaccine
Vaccine producers are confident their existing vaccines will provide similar levels of immunity against the new strain of Covid-19, although no official test results have confirmed this. The UK has approved the use of Astra Zeneca/Oxford Vaccine after passing the required regulatory hurdles. The vaccine began distribution yesterday. Many EU countries began their roll-out of the Pfizer/BioNTech vaccine. We will provide a note to prompt long term investors focus on their finances in 2021. The complexity of market risks is huge and professional advice is in great demand as the whole world suffers the risks, with lower for longer returns likely so navigating this outlook is essential. We are sure that our asset allocations, using Globally leading funds, will place our clients in solid positions. We urge investors and wider families to take action and review their financial positioning. We take this opportunity to wish you and your families the very best of health an happiness for 2021. Warmest Regards. Richard and the Best Price FS Team |
