Latest News and Events

Second Guessing the Economy

If we were all to react to every pronouncement on the economy then there wouldn’t be very much time for anything else. That’s not to say that we should ignore economic forecasting, simply that investment decisions are best made based on trends and personal circumstances rather than individual predictions and statistics.

Take the pre-Brexit announcements by the Bank of England and others for example. Had investors acted on their predictions that a pro-Brexit vote would result in a collapse in the economy, they may not be happy to see subsequent announcements of stronger than expected growth. Particularly so, with the British Chambers of Commerce (BCC) now having upgraded their UK GDP forecast from 1.8% to 2.1% for 2016 and from 1% to 1.1% for 2017.

Interestingly, the BCC attributes some of the higher than expected growth to the fact that in the absence of a clear roadmap towards Brexit many firms are adopting a business as usual approach and this is helping to keep the economy in a buoyant state. Additionally, according to the BCC whilst the uncertainty has negatively affected the outlook of some businesses, others are seeing this as a time of opportunity.
So what should investors do in the face of conflicting information? Best practice advice remains to invest based on present circumstances and perceived future needs with regular reviews designed to confirm their ongoing suitability.

If you’re looking for pensions or investment advice, or if your situation has changed and you may therefore need to review your existing investment portfolio, contact Beckworth by using one of the links on our website.