News Release – April 2019: How market uncertainty challenge to building investor confidence

These are challenging times for the global economy. A myriad of political, social and economic issues mean that investors and businesses are increasingly cautious about long-term commitments. Fuelled by the UK’s complex negotiations around the planned departure from the European Union (EU) and nervousness in the US market, many are choosing to sit tight and hold back until the future becomes a little clearer. Market uncertainty however can bring with it great opportunities and forward-thinking investors are exploring key areas where they can improve their returns.

Recently, a poll from the British Chambers of Commerce predicted that business investment in the UK is set to decline by 1% in 2019. If this were to happen, it would make it the worst year since the financial crash of 2008. As well as this issue, economic growth reports have predicted that 2019 will be at just 1.2 per cent, making it the lowest in a decade. A worrying position for the UK, with these estimations corresponding to the uncertainty which is currently surrounding Brexit. It is worth noting that these are simply forecasts which will undoubtably change and adapt with every new update surrounding Britain’s departure from the EU, once the final outcome and plan becomes clear.

The US on the other hand is a large, complicated market. The inverted yield curve is producing warning signs of a recession and recent data shows a clear weakness from housing and retail sales and customer sentiment. As well as this, for a fourth straight quarter, CEOs say they are less optimistic which is highlighting a broader trend of concern around corporations at their peak time of profitability. Consumer confidence in the U.S. is reflecting this negative sentiment with it dipping for the fourth time in five months and it has missed all the analyst predictions for the month of March.

When looking as far out as China, it has been made clear that even Chinese growth will be lower this year due to trade tensions. The country is also set to have a slower growth in consumer spending and a tighter hold on global liquidity. Although it is not all doom and gloom for China as the government have increased their efforts to stimulate the economy through monetary, fiscal and regulatory measures to help keep the growth levels on target…

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