Well, at last a vaccine is well and truly on its way and we can perhaps look forward to celebrating Christmas this year.
Without wanting to reflect on 2020 too much, I want to acknowledge those that have not only lost their loved ones, but also those that have lost their jobs and livelihoods and, if there is any good to come from all of this, it is that people now acknowledge the mental pain and suffering that a silent majority live through each day. For my part, if I can help in any way, I’m always here for anyone and whilst I have had my own battles this year, I can say without hesitation it helps to have been able to share these with others, not least yourselves!
So, on to what the dickens is happening in the political and financial world!
As I hope many of you may have noticed, we have finally seen a sustained recovery within the UK sharemarkets during November and this has helped to push other investment asset sectors forwards also (except cash deposit rates which, for some time to come, will be rock bottom I’m afraid). The recovery has largely been on the back of the news of vaccine breakthroughs and the anticipation of the economy being allowed to fully re-open again in 2021.
The Chancellor has predicted, in his most recent statement, that our GDP (rate of domestic production) will recover sharply during the next 2 years before returning to more ‘normalised’ rates of growth and this, apart from the obvious signs of being good for business and other markets, is most importantly going to be good news for the employment market, which has been devastated in 2020.
Brexit agreement remains an outstanding issue amongst the tremendous positives that presently exist for the economy looking forward, but given the way that the share index has continued to rise in spite of this, you wonder whether those that arguably know better, feel that a deal is going to be done, albeit at the last minute (well the politicians would need to make it a cliffhanger wouldn’t they, or we would wonder what all the fuss has been about for the last 3 to 4 years?).
In terms of the specific dynamics of sharemarket recovery, it is fair to say that some of the hardest hit share-sectors are now leading the recovery (perceived as bargains?), but for my part I would favour investment into more resilient areas, with arguably less risk and certainly less indebtedness; however, it’s all good news for now.
So the investment news is great, the outlook for a change to the way that we can lead our lives looks clearer, but as we are constantly being reminded, we are not quite there yet, altough how anyone can realistically interpret the current guidelines and make sense of it all, beyond ‘using your noddle’ and only mixing with others where essential or unavoidable, is confusing to say the least!
More to come, but as I have said above and am reminded by some of my lovely clients/friends, this year is taking its toll mentally so, even if its just to discuss the weather, lets talk, facetime or whatever we need to do so that we can move beyond this situation and into a much more positive 2021.
I’m here for a chat and I know you are also there for me, which believe me, I am immensely grateful for as always.