Global economic forecasts point to a broader growth picture emerging in 2018. All major regions are contributing to the positive momentum, with the latest data pointing to a synchronised recovery in the three main pillars of the global economy: the US, Europe and China.
We think it will be another positive year but there are a few caveats. The post financial crisis recovery which started in 2009 is now in its 102nd month. Global equities are higher than their peak before the financial crisis. So the current bull market is one of the longest recorded since the Second World War.
Since the Brexit referendum the UK economy has far exceeded the expectations of market observers. The positive momentum of the pre- referendum economy and strong consumer confidence, have carried the nation through a period of heightened uncertainty.
The post financial crisis equity bull market is now in its ninth year, and is one of the longest ever recorded. While it is true that bull markets do not tend to die of old age alone, the consensus opinion is that this one will slow down as it enters its twilight years.
In an environment of rising interest rates the outlook for bonds is challenging. But as the cycle matures, bonds will play an increasingly important role in a well- diversified portfolio to help protect on the downside.
Ireland’s economy looks set to grow by 4% again in 2018. For the fourth year in a row Ireland will be the fastest growing economy in Europe with rapid increases in retail sales, falling unemployment and surging tax revenues. Brexit poses the biggest threat to continued growth.
Currency fluctuations had a significant impact on investor returns in 2017. After several years of strong gains, the US dollar was the big loser last year. What lies in store for currencies in 2018?
At Davy we continuously analyse markets to identify the best investment opportunities for our clients. We tasked our team of analysts, economists and strategists to pinpoint trends in the sectors they think will do well next year and potentially be good long-term investments.
At this time of year, many of us start out with lists of New Year's resolutions. Improving our approach to financial planning, and sticking to it, is one thing that should remain at the forefront of our minds. Brian Walsh, Director of Financial Planning, outlines five key areas that we should focus on.
For many people, investing in property through a pension is a viable and increasingly attractive option. Peter Feighan, Senior Financial Planning Manager, outlines the reasons why.