Performance Update – December 2023

15 December 2023

A positive year despite uncertainties. What can 2024 bring? We are not in the area of predictions, but some significant signs that the worst can be left behind us…





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Dear *|FNAME|*

As we wrap up another year and step into the festive season, I want to extend my warmest wishes for a Merry Christmas and a prosperous New Year to you and your loved ones.

As the festive season brings its cheerful and cosy charm, it’s a wonderful opportunity for us to pause and reflect on the journey we’ve embarked on together in the world of investing. Just like a well-loved Christmas tale, our story this year has been a blend of anticipation and resilience.

Throughout 2023, resilience has been a crucial factor. Staying steadfast in our strategies has enabled our portfolios to start yielding positive returns, thanks to the anticipated halt in rate hikes and the decrease in inflation, which has reintroduced a sense of confidence.

It’s significant to highlight that amidst the challenges of 2023, our portfolios have managed to achieve returns that surpass inflation for the year. With UK inflation currently below 4%, there’s a sense of optimism that inflation will remain manageable as we move into a phase of subdued growth and potential recessions in developed economies.

This data is net of fund charges but does not include potential platform costs or advisor charges which are likely to alter the overall returns set out above.

Over the past two years, many have understandably raised questions about the viability of long-term investing, given the heightened uncertainty brought about by COVID, international conflicts, global supply chain disruptions, and soaring inflation.

However, 2023 has offered several key insights:

  • Economic news doesn’t instantly impact markets; much of the information we come across is often already factored into market prices.
  • Maintaining cash reserves typically fails to yield returns that surpass inflation over an extended period.
  • And importantly, no situation is permanent!
We don’t foresee the markets maintaining their current path in the long term, but it’s clear that they stand in a different position compared to where we were last year at this time. While inflation remains a factor that cannot be overlooked going forward, we do not anticipate a continuation of the double-digit inflation rates that have been prevalent since 2021.
What can 2024 bring? 

Unless unforeseen geopolitical events arise, it seems likely that we’ll witness a resurgence of stability in risk assets. As is customary, there will be a mix of successes and challenges within the equity markets, reflecting the diverse economic landscapes where some economies may face recessions while others experience higher-than-anticipated growth.

Falling rates (as we expect) in 2024 has historically been good for equities, as people seek better returns from cash or fixed income. We are well positioned for such an environment.

May this festive season bring you joy, peace, and prosperity. Here’s to a bright and successful 2024, filled with health, happiness, and continued financial success.

Merry Christmas and a Happy New Year!

Warm Regards

Louis Greening
Investment Specialist

Our mailing address is:
[email protected]

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