During another international trip visiting some of deVere Group’s 71 offices across the globe, and after conversations with consultants in the various locations, it became clear that clients are heeding deVere’s message of the importance of reassessing investment portfolios.
At the beginning of a new year it is always advisable for clients to meet with their financial adviser to re-evaluate their portfolios.  However, as we have recently been highlighting in the press worldwide, doing this at the start of 2015 is perhaps even more important.

Global economic growth is weaker than it has been, with the exception of the U.S. economy, and this, combined with other factors, is likely to increase stock market instability – which could potentially affect investor returns.

A number of key geopolitical factors are coming into play, hence rebalancing wealth portfolios to make sure they are properly diversified will allow investors to not only mitigate the risks of increasing market volatility, but also take advantage of the opportunities that will inevitably present themselves.

For example, the quantitative easing (QE) program announced by the European Central Bank last week, which will see €1 trillion being injected into the Eurozone economy between now and September 2016, will encourage investors to buy Eurozone exporters’ stocks.

Another element to take into consideration is the recent Greek elections, with Syriza, the anti-austerity party claiming victory and forming a government with the Independent Greeks.  At least six months of market volatility is predicted by our International Investment Strategist, Tom Elliott, as a result.  The Euro will weaken as investors look towards perceived ‘safe havens.’

Also, following the Swiss National Bank’s move to abandon its cap on the Franc’s value against the euro, the Swiss Franc rose by 30 per cent.  This uncertainty, although it must be very closely watched, could present lucrative opportunities for investors.

We may also see more problems within the Eurozone, as France is not bowing down to structural reforms stipulated by the European Commission and Germany, due to a backdrop of weak economic growth and demands for austerity in Germany.

All these factors, amongst many others, underscore the importance of reviewing investment portfolios on a regular basis, to check that investments remain on target and so modifications can be made if/when there are shifts in the market or when clients’ circumstances change.

In times of increasing market volatility, as is predicted throughout 2015, it’s reassuring that deVere Group’s message that investors should consistently re-evaluate risk appetite is being heard.

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