The General Election has come and gone and Chancellor Sajid Javid has officially announced his 11 March Budget. With Brexit being quickly ushered in and the economy waiting to respond, Headway Wealth wanted to update you on the January 2020 market and what you can expect in the upcoming months. We’re your trusted financial advisors, so if you have any questions on how the market will affect you and your savings, contact us today. We’re happy to help you protect your assets and investments.
January 2020 Market Predictions
Despite the economy experiencing a surge after the General Election, experts are predicting global industrial production (IP) cycles in between global recessions. There has never been four back-to-back global IP cycles before, so this could be an unprecedented event. We have also noticed that the last decade was the slowest recovery cycle compared to that of 1961-1969 and 1991-2000.
You may think that this is all terrible news, but we’re seeing that consumers are still spending money at a reasonable rate and that the economy is keeping pace with the demand. Because of the constant demand for consumer goods, we expect to see the global IP cycles in Quarter 1 and Quarter 2 of the new year increase, with the trend potentially continuing into 2021.
As we stated in our previous General Election blog, UK banks are now willing to invest more heavily after Great Britain confirmed that it will be leaving the European Union (EU). Despite being willing to inject more cash into the economy, banks are still concerned that inflation is too low. For this reason, we suspect banks will wait a little longer to see what happens to the economy and trade before investing large amounts of money back into the national economy.
The silver lining throughout Brexit’s turmoil was that the market drastically improved and performed relatively well in Quarter 4. Like our General Election blog stated, international investors are predicted to return, which means that global equities could rise to 5-10%. Bonds are still struggling to amount to their former weight, but they could surprise us and yield a larger value in early 2020. What we will say is that there won’t be a run up to equities like there was in 2000, so don’t get your hopes up too high!
World Factors at Play
Because the world economy fluctuates and country relations are always changing, it’s wise to keep the following in mind when investing or trying to predict the 2020 market. Read the latest economic and political advisories below and contact Headway Wealth to discuss what they mean for you and your investment opportunities. We’ll help you bring your finances to life.
Factors that may affect the 2020 market:
- Interest rates suddenly rise
- A Trade War begins, especially after the UK leaves the EU
- Brexit negotiations turn sour
- Who wins the next US Presidential Election
- Tensions in the Middle East rise
- Tensions in China and Taiwan ignite
- The Chinese debt bubble pops
- Major banks get into policy error disputes
Book a meeting with Headway Wealth today to get the independent financial advice you need to invest smarter in the new year. We’re only a phone call or click away so make the call today.
