Markets still calm - just avoid Bitcoin
senior investment director at Investec Wealth & Investment, looks back at a “good” second-half performance for investors and what the next year could have in store THE second half of 2017 was another the headlines and progress in this good one for investors who were area has been a key factor in supporting willing to accept a modicum of the pound. risk, although there was little sense of The underlying economy is putting euphoria, even as many equity in a mixed performance. markets posted new all-time highs. Domestic demand, tempered by
Headlines were dominated by weak real wage growth, is sluggish, but geopolitical events, but consumers there are signs growing global demand and companies around the world and a relatively weak pound are did their best to ignore the news, beginning to boost exports. leading to expectations of the highest The upward grind of risk asset levels of global economic growth since prices has been relentless yet rarely 2010. trusted.
The star performer and headlinegrabber The good news is the momentum last year was Bitcoin - the carried forward into 2018 is strong and cryptocurrency and worldwide it is hard to see a major recession payment system. evolving without a helping hand.
Although we acknowledge that the Less optimistically, we are acutely blockchain technology that supports it aware all financial assets have is potentially valuable, we continue to extended their gains with unprecedentedly view cryptocurrency as not being an low levels of volatility without investable asset class. a material setback.
In our opinion, they do not fulfil the The economist Hyman Minsky criteria of bona fide currency and their (1919-96) observed that longer periods price volatility would be unwelcome in of calm conditions tend to lead to portfolios. higher levels of risk-taking, meaning
Despite ending the year at an alltime any subsequent reversal will be more high, the FTSE 100 Index lagged damaging. behind most major international indices. We would not be at all surprised to see a meaningful correction some time
Much of this was down to the recovery in 2018 and are currently minded to of the pound owing to the high keep some powder dry for such an overseas earnings content of the index. opportunity, and wait for the market to
Brexit negotiations continue to dominate offer us better value. TART-UP businesses in Huddersfield have been handed a royal invitation. The Duke of York’s Pitch@Palace on Tour will visit the University of Huddersfield on Wednesday, February 7, when up-and-coming entrepreneurs will get the chance to explain what their businesses are all about and speak to business people who can help them as potential mentors, advisers, investors and distributors.
The event at the university, where Prince Andrew pictured - is Chancellor, will focus on businesses involved in generating, capturing and analysing data and data security.
Businesses making the best “pitch” for support will be invited to attend a Pitch@Palace Bootcamp in March at Manchester University – and get the chance to go on to become one of just 12 businesses to present in front of an international audience of entrepreneurs, investors, media and technology figures at St James’ Palace later in the year.
Established by the Duke of York in 2014, Pitch@Palace has helped more than 490 businesses grow – with some going on to enjoy global success.
Entrepreneurs can still apply for the February event – but will have to be quick. Visit the website at www. pitchatpalace.com/apply.