What to Expect from Investing in 2024
After a year of financial volatility in 2023 - What can we expect from investing in 2024?
In 2023 UK investors navigated the choppy waters of market volatility fueled by geopolitical tensions, soaring inflation, and tightening monetary policy, and with this comes the inevitable question: what can we expect from investing in 2024?
While it's always impossible to say for sure what the future holds, there are a few trends that we think are worth considering. Despite the financial fluctuations, investing still remains one of the best ways to make your money work for you, potentially creating future financial freedom and outpacing the eroding effects of inflation.
1. Continued market volatility
The past few years have been marked by significant market volatility, and it's likely that this trend will continue in 2024. This is due to a number of factors, including the ongoing financial effects of the COVID-19 pandemic, the wars in Ukraine and Gaza, and rising interest rates. As a result, investors should be prepared for a bumpy ride and should avoid making any rash decisions without the guidance of a wealth management expert.
There are grim predictions such as slow growth and the risk of recession to contend with, but as always where there is a problem, there is also opportunity.
2. The importance of ESG investing
Environmental, social, and governance (ESG) investing is becoming increasingly popular. ESG investors consider the environmental, social, and governance impact of a company before investing in it. ESG investing can be a good way to align your investments with your values and can also lead to better long-term returns. ESG is not a trend that is likely to dissipate any time soon; it's a fundamental shift in how we view the role of businesses in society, driven by powerful forces like the growing importance of sustainability, evolving investor demands, and stricter regulations.
With regulatory pushes to standardise reporting it will make it easier for investors to evaluate and assess businesses for potential investment
3. The need for professional advice
Investing can be complex. Because of the wealth of unqualified resources and information available, it's always a good idea to seek professional advice from a qualified financial advisor. A financial or wealth management advisor can help you create an investment plan that meets your individual needs and goals.
It's important to remember that there is no crystal ball, and no one can predict the future with certainty. However, by being aware of the trends that are shaping the market, we can help you make informed investment decisions and increase your chances of success.