The biggest investment lesson for me over the past ten years is that the fog of uncertainty in 2008 has never lifted and never will. As long as we operate in real time, without a crystal ball, we'll never know what the next six months let alone the next ten years, holds for us. And that’s fine because there is a solution.
What does a pair of jeans and the US Post Office have in common? Little on the face of it, but from an investment perspective quite a lot. They are both second-order beneficiaries of someone else’s investment boom.
Last week, I suggested that 2018 would be the year in which we waved goodbye to the favourable conditions of 2017. My concerns were largely focused on inflation and interest rates. Now I am much more concerned about the growth part of the equation.
2017 was a good year for equity investors. It is hard to overstate the importance of diversification in an investment portfolio. We take a closer look at the themes, asset classes and regions and how they may impact investors in 2018.
Most of the time investors don’t need to think too much about market timing or asset allocation. The long-term trajectory of financial markets is up and the only sensible thing to do is to be fully invested and allow the odds to work in your favour. As we enter 2018, however, it doesn’t feel like ‘most of the time’.