We are always keen to extol the virtues of sticking with a financial plan and acknowledging that news headlines (for better or worse) don’t always impact your investment returns. 2024 will undoubtedly throw up numerous scenarios that will test investors’ resolve. For example, this year will be ‘the biggest election year in history’ as, for the first time, more than half the globe will have the opportunity to vote. Elections in top ten population countries such as India, Indonesia, Bangladesh, Russia, and of course the US, will contribute to more than an estimated 4 billion people potentially participating in elections.
There are of course caveats to the above; turnout will be much lower than the potential figure, and (including in some of the above listed countries) there are arguably various shades of democracy that will be at play this year. However, there will be plenty of newsprint and headlines generated. It will be important to remember that political events don’t always impact financial markets, and if they do, not always in the way we might think. At Zurich, we are cognisant of the political backdrop to the year ahead, but as always, we will continue to adhere to our active top-down investment approach.
A final reminder that our ‘2024 Investment Outlook: Balancing Act’ webinar takes place tomorrow. Registration details available here.
As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.