{"id":155140,"date":"2019-09-10T09:00:39","date_gmt":"2019-09-10T13:00:39","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=155140"},"modified":"2019-09-10T07:46:50","modified_gmt":"2019-09-10T11:46:50","slug":"investors-need-to-avoid-complacency-despite-improving-market-sentiment","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/investors-need-to-avoid-complacency-despite-improving-market-sentiment\/","title":{"rendered":"Investors need to avoid complacency, despite improving market sentiment"},"content":{"rendered":"
September 10, 2019<\/div>
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By George Prior<\/strong><\/p>\n

Global financial markets are feeling more confident, but investors must avoid complacency, warns a leading analyst at one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

The warning from Tom Elliott, deVere Group\u2019s International Investment Strategist, comes following calming economic data and the announcement of further U.S. \u2013 China trade talks next month.<\/p>\n

Mr Elliott comments: \u201cThere is some reassuring economic data from the U.S., namely the August non-manufacturing ISM index of business confidence.<\/p>\n

\u201cInvestors are conscious that the current U.S. economic cycle is the longest on record and many are looking for issues that might induce a recession. Some analysts point to falls in U.S. second quarter corporate earnings and capital spending as a potential trigger, others place greater emphasis on the risk to the U.S and the global economy of the U.S – China trade dispute.\u201d<\/p>\n

Furthermore, Mr Elliott says the pound\u2019s volatility is set to continue as the risk of a no-deal Brexit has diminished.<\/p>

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He states: \u201cPrime Minister Boris Johnson\u2019s authority has weakened, and it appears likely he will be forced to seek an extension to Article 50 beyond 31st October.<\/p>\n

\u201cThe currency\u2019s recent volatility, with several days of swings against the dollar of over 1 per cent in late August and early September, looks set to persist.<\/p>\n

deVere\u2019s International Investment Strategist goes on to say: \u201cWhile some ultra-bearish analysts suggest the pound could fall to $1.00 on a no-deal Brexit, others suggest a floor of around $1.09.<\/p>\n

\u201cBut we might also see a strong rally in sterling if the anti-Brexit Conservative rebels and opposition parties continue with their recent successes in confounding Johnson\u2019s Brexit plan. A return to levels around $1.50 may be possible if the UK eventually abandons Brexit, given the likely surge of investment and pent-up spending that would boost economic growth.\u201d<\/p>\n

Mr Elliott adds: \u201cBoris Johnson\u2019s attempt to stop Parliament passing a law preventing a no-deal Brexit, through proroguing Parliament, has failed. So too has his attempt to have a general election this side of 31st October, on the binary choice of \u2018support my no-deal Brexit or have Jeremy Corbyn for Prime Minister\u2019.<\/p>\n

\u201cMeanwhile his attempts to strike a new deal are regarded by many as a sleight of hand, with no new proposals made to solve the Irish backstop issue that will meet the EU\u2019s minimum requirements.<\/p>\n

\u201cIndeed, the government\u2019s chief negotiator in Brussels has reportedly demanded a revision not only to the Irish backstop provision that Theresa May agreed to, but is also demanding the right for the UK to have its own regulatory standards for goods \u2013 which would make a future trade deal with the U.S. easier to do, but make one with the EU harder.\u201d<\/p>\n

deVere\u2019s Investment Strategist continues: \u201cThe PM looks set to lead the Conservatives into a general election after 31st October, having failed to achieve Brexit, nothing to show in terms of negotiations with the EU, and deep hostility towards him from a large part of his party after having removed the party whip from 21 Conservative lawmakers last week who voted to avoid a no-deal Brexit.<\/p>\n

Mr Elliott concludes: \u201cGeopolitical issues drive investor returns.\u00a0 Investors can and should protect themselves from market uncertainty through exposure to a broad range of assets, currencies and geographic regions. The mantra of an investor should always be \u2018diversification\u2019 \u2013 this is especially pertinent in today\u2019s uncertain market conditions.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Global financial markets are feeling more confident, but investors must avoid complacency, warns a leading analyst at one of the world\u2019s largest independent financial advisory organisations. The warning from Tom Elliott, deVere Group\u2019s International Investment Strategist, comes following calming economic data and the announcement of further U.S. \u2013 China trade talks next […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-155140","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=155140"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155140\/revisions"}],"predecessor-version":[{"id":155141,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155140\/revisions\/155141"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=155140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=155140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=155140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}