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.