2015 was supposed to be the year of flying cars and hoverboards, however whilst technology has failed to deliver either, its impact across all areas of the global economy over the past few years has been incredible.
Tablets and smartphones for example have revolutionized how we consume information, organise personal and financial affairs, and watch TV among many things.
The impact on financial markets in our view has been significant. Investors are far more in touch with information and news flow and also only a button click away from responding to that.
What doesn’t change is the fundamental process of investing. The aim is to purchase an asset or income stream at a price today that will mean the owner can enjoy increasing value over time in the form of price growth and increasing annual income. It would also be great if the asset has a tendency not to experience periods where the value declines and guarantees that the real value of the investor capital is not reduced over time by inflation. Risk free return is the mecca, we look forward to its discovery.
In the meantime investors will need to grapple with the usual dynamics of low returns from cash investments, better levels of income provided by shares and property but with potentially higher levels of volatility. Fundamentally our base case suggests that growth assets will perform better than defensive, however we will outline some risks to this assumption.
In this report we outline some of our thoughts for the year ahead, and we will attempt to keep the jargon to a minimum.
We hope for you a happy, healthy and prosperous new year in 2015.
David, Dane and Brian.
Click to access our 2015 Investment Outlook