On the 13th of September 2023, we were delighted to host our inaugural Investment Update Event at the Hilton Hotel in Manchester. This highly anticipated event attracted a diverse audience of investors and financial experts eager to gain insights into the ever-evolving world of investments.
The event featured David Smith, the renowned Economics Editor of The Sunday Times, as the keynote speaker alongside Alex Brandreth our Chief Investment Officer.
Key Takeaways from the Event:
- Consequences of Shocks – One of the central messages from David Smith’s keynote address was the notion that every “shock” in the global economy has consequences that extend far beyond the initial headlines. This perspective underscores the importance of thoughtful, long-term investment strategies that account for the ripple effects of significant events.
- Weak Global Growth Outlook – Attendees were provided with an assessment of the global economic landscape. Despite ongoing challenges, it was highlighted that the UK and Europe had outpaced China in terms of economic growth for the first time in decades, combined by a shifting dynamic in the global economy. Whilst growth has weakened in the UK And Europe since the pandemic, consumer confidence has improved, energy prices have come down and lower inflation should provide a boost to real incomes.
- End of Near Zero Interest Rates – The era of near-zero interest rates, which has persisted for an extended period, is now at its end. This shift carries profound implications for investors, requiring a re-evaluation of traditional strategies that relied on exceptionally low borrowing costs.
- Equity Markets – The FTSE 100, a prominent UK stock market index, was highlighted for its robust performance. Investors were encouraged by its resilience and positive performance amidst global economic uncertainties.
- S&P 500 and Tech Dominance – The S&P 500’s strong performance was acknowledged, but it was emphasised that this success is heavily dominated by the performance of ten companies, dominated by the large technology names. Questions were raised about whether these tech giants are potentially overpriced.
- Government Bonds Attractiveness – Government Bonds were presented as an attractive option moving forward. These bonds were showcased highlighted as a potential safe haven in an uncertain economic environment, providing stability and income for investors. There are also tax advantages for individuals currently.
- Fixed Income Market – Higher interest rates have prompted a repricing of most asset classes, potentially creating opportunities for investors to achieve higher returns.
- Priced-In Bad News – A notable insight from the event was the concept that much of the bad news has potentially already been priced into certain equity markets, which may represent opportunities for investors going forward.
We hope the seminar provided attendees with a wealth of valuable insights and data-driven perspectives on the current investment landscape. We look forward to making this an annual event.
If you have any other questions please don’t hesitate to reach out to any member of the Luna team.
The content in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.