Past performance is no guarantee of future returns, we are frequently reminded. For many of us, that’s no bad thing given the events of last year. So, the start of a new year is a chance to look ahead rather than dwell on what has gone.
In an investment context, 2020 actually turned out better than many people would have anticipated when we first learned that a virus had originated in China and was spreading rapidly around the globe.
We are now on the threshold of another period of uncertainty, this time as a result of the UK completing its withdrawal from the European Union. That signals further potential volatility for investment markets. This may not be a bad thing – it simply means that we can’t predict with any confidence what will happen over the coming months.
It’s worth remembering that when we were in this situation last year, investors who could foresee the possible winners and losers were able to position themselves accordingly. Those who got it right and identified areas that might experience higher levels of demand, increased profits and rising share prices, did well.
The same will apply in 2021. We may be setting off on another trip into the unknown, but careful allocation of money, consistent with acceptable levels of risk, could again pay off in the form of strong investment performance.
At Hartey Wealth Management, we welcome the opportunity to discuss prospects for 2021 with anyone seeking investment advice in Cheshire. Let’s be positive and move forward together.
Happy New Year!