Investment Outlook 2017

Timeless Principles in a Changing World

2016 will be a year to remember for a long time to come. It started with a short-lived global growth scare and went on to deliver some seismic and surprising shifts in the global political landscape.

Welcome to Investment outlook 2017. We will be releasing new episodes on our Outlook every Wednesday from 7 December to 18 January.

Through it all, our clients’ investments have been remarkably resilient, not only bouncing back from the sell-off that ushered in the year, but pushing ahead with some strong gains. We put this down in large part to the deeply embedded investment principles that bring discipline and structure to our decision-making.

Our patience, and focus on quality and value, helped us remain on course during the panic that gripped markets at the start of the year. Sticking to our positive outlook for the global economy and markets has delivered results. We focused on the fundamentals, not shifting from our stance when the polls were confounded by the EU Referendum, or when the US presidential election winner was announced.

Looking ahead to 2017, we see the political landscape continuing to evolve. With a number of key elections scheduled in Europe during the year, most notably in France and Germany, we believe the populist vote will remain strong. At this stage, though, it’s hard to tell whether populism will determine the overall outcome as it did in the UK and US this year – and in India and Indonesia in recent years.

If this populist trend continues we expect to see political tensions building up further, reflected in the geopolitical landscape and in economic policy. In our view this has the potential to increase the pace of policy change globally, but as these changes evolve, we will also see investment opportunities appearing. Regardless of how events unfold, we will remain steadfast in following our investment principles, focusing on assets that we believe are inexpensive relative to their long term value.

In our Investment Outlook 2017 series: Timeless Principles in a Changing World, we discuss our investment ideas for the coming year and also examine some of the long term trends that we believe will shape the investment landscape of the future.

Over the coming weeks we will be sharing our articles along with video content from the Coutts investment team on coutts.com and by email, which we hope you will enjoy. We begin today with “Investing for Change: Danger & Opportunity” and will follow on with changing demographics, the importance of alternative strategies, investing in private companies and how responsible investing can add value.

We look forward to discussing our investment views with you in the months ahead and wish you a happy and prosperous 2017.

IMPORTANT INFORMATION

This webpage is produced by Coutts for information purposes only and for the sole use of the recipient and may not be reproduced in part or full without the prior permission of Coutts.

The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

Past performance should not be taken as a guide to future performance.

In the case of some investments, they may be illiquid and there may be no recognised market for them and it may therefore be difficult for you to deal in them or obtain reliable information about their value or the extent of the risks to which they are exposed. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down. Investments in emerging markets are subject to certain special risks, which include, for example, a certain degree of political instability, relatively unpredictable financial market trends and economic growth patterns, a financial market that is still in the development stage and a weak economy.

The information in this webpage is not intended as an offer or solicitation to buy or sell securities or any other investment or banking product, nor does it constitute a personal recommendation. Nothing in this material constitutes investment, legal, credit, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you.

The information in this webpage is believed to be correct but cannot be guaranteed. Any opinion or forecast constitutes our judgment as at the date of issue and is subject to change without notice. The analysis contained in this document has been procured, and may have been acted upon, by Coutts and connected companies for their own purposes, and the results are being made available to you on this understanding. To the extent permitted by law and without being inconsistent with any applicable regulation, neither Coutts nor any connected company accepts responsibility for any direct or indirect or consequential loss suffered by you or any other person as a result of your acting, or deciding not to act, in reliance upon such information, opinions and analysis.

This document has been produced by Financial Advice & Investment Solutions at Coutts and does not constitute investment research. Neither this document nor any copy thereof may be sent to or taken into the United States or distributed in the United States or to a US person. In certain other jurisdictions, the distribution may be restricted by local law or regulation.

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