For people investment planning in Cheshire, the UK stock market may seem like a solid bet.
Despite a number of economic and geopolitical shocks, the stock market has proved resilient, consistently rebounding. But can it last, and are we due a ‘correction’?
It is impossible to predict the future with any certainty. Whilst markets continue to climb, there is no firm evidence that any ‘correction’ is on the way. It is important, though, to be aware of different scenarios to ensure you are comfortable with your financial planning strategy and the risks you are taking.
There are multiple reasons that might cause investors to tread carefully in the financial markets. There is nervousness about the potential of an AI ‘bubble’ bursting, some fear looming issues in the banking sector, whilst others cite the prospect of further trade friction between the US and China.
Yet, despite this uncertainty, equities are continuing their upward trajectory. Over the last 12 months, the FTSE 100 index was the best performer, rising by 17.53%. It represents the largest 100 listed companies in the UK. Whilst an investment in UK listed companies is not necessarily the same as an investment in the UK economy, a weaker sterling provided the basis for stronger exports worldwide. The London Stock Exchange includes many companies that trade globally, and which don’t depend on a strong British economy to prosper.
For all the lingering uncertainties over the UK and global economy, the stock market continues to surpass expectations. Investors will be watching the forthcoming Budget closely, and hoping for stability and certainty.
