Diversify your future

Are the good times coming to an end as we slowly head towards another global recession? We speak to Richard Sykes at Davidsons IFA to get his take on how to invest in a volatile market.

Speaking with Richard, we learn that “Trump, trade wars and Brexit are all creating volatility in the markets, and many find themselves needing help to make sense of it all.”

“Trump, trade wars and Brexit are all creating volatility in the markets, and many find themselves needing help to make sense of it all.” – Richard

Richard continues, “from a Brexit standpoint, knowing the outcome is an impossible task, but the consensus is that a ‘hard Brexit’ will put more pressure on the UK economy than any form of deal – good or bad.” However, we need to look beyond Europe at the larger economies of the US and China to understand the real implications of what’s driving the markets.

“The trade tariffs are certainly not helping. This, along with the US monetary policy of steady interest rate rises due to their strong economy, are beginning to put a squeeze on other global markets, especially emerging economies.”

Back here in the UK, banks and building societies offer protection for your capital but with low interest rates, and offer no protection from the ravages of inflation.

So, as an investor wanting greater growth potential with your money, how do you navigate in these times of such volatility? Richard tells us: “At Davidsons, we believe in the diversification of your money, either in your pension or investments. Having a broad, diversified portfolio, invested in funds with a consistently strong track record is key.

“Passive funds can track an index at lower costs and perform well in a rising market, but we believe in times of volatility using our skill, judgement and experience to choose ‘actively’ managed funds will provide betterreturns over the longer term.”

If you’re looking to make your money work harder for you during these times of uncertainty, why not call or pop into Davidsons IFA’s Wadebridge office for a free financial review? Or, to discuss any financial matter, contact Richard!