{"id":168659,"date":"2020-04-14T08:19:13","date_gmt":"2020-04-14T12:19:13","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=168659"},"modified":"2020-04-14T08:19:13","modified_gmt":"2020-04-14T12:19:13","slug":"other-major-headwinds-not-just-coronavirus-could-hit-your-finances","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/04\/other-major-headwinds-not-just-coronavirus-could-hit-your-finances\/","title":{"rendered":"OTHER major headwinds – not just coronavirus – could hit your finances"},"content":{"rendered":"
April 14, 2020<\/div>
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By George Prior<\/strong><\/p>\n

To protect and grow wealth, investors need to carefully monitor other major factors \u2013 not just coronavirus, warns the CEO of one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

The warning from deVere Group\u2019s Nigel Green follows last week\u2019s sharp rally in global markets \u2013 the MSCI experienced its biggest rise in more than a decade \u2013 but as first-quarter earnings results season gets underway this week.<\/p>\n

Mr Green says: \u201cWe will get an insight this week into how heavy a hammer-blow coronavirus has delivered to corporate America and corporate Europe in the first three months of the year.<\/p>\n

\u201cAlmost inevitably, the results will trigger widespread downward revisions.<\/p>\n

\u201cHowever, this sits against a growing optimistic investor sentiment as many countries move to ease lockdown restrictions and as many of the hardest-hit areas around the world see a flattening of their infection curves.<\/p>

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\u201cInvestors are now increasingly looking beyond the immediate poor data towards the likely recovery towards the end of 2020.\u201d<\/p>\n

He continues: \u201cYet Covid-19 is set to have a hold over investment decisions for a long time to come because it has, in many respects, fundamentally changed how we do business.<\/p>\n

\u201cFor instance, in 2018, it was reported that more than half (56% – source: OWL Labs) the companies in the world allowed remote working.\u00a0 Of course, this figure is now going to be significantly higher as working remotely becomes increasingly the \u2018new normal\u2019 in many sectors across the globe.<\/p>\n

\u201cNew industries will emerge, some existing sectors will rebound and strongly, whereas others will decline.\u201d<\/p>\n

Due to its far-reaching impact, investors around the world are not only monitoring the usual markers like the price of gold and oil and international fiscal and monetary policies, but they\u2019re also tracking the global health policies and coronavirus-death tolls, insists Mr Green.<\/p>\n

\u201cThis is as it should be. But there is also a concern that the all-encompassing coronavirus news could prevent investors from tracking other key factors that could significantly impact their returns.\u201d<\/p>\n

The deVere CEO observes that besides Covid-19, investors need to consider a raft of other potential headwinds.<\/p>\n

\u201cThese include the uncertainty generated by this year\u2019s U.S. presidential election,\u201d he says.<\/p>\n

\u201cUncertainty – something financial markets loathe – typically increases in election periods.<\/p>\n

\u201cThe 2020 U.S. presidential election is seen by many as particularly important as not only will whoever wins be the CEO of the world\u2019s largest economy, they will be in that role as the world economically readjusts following the global fallout of coronavirus.\u201d<\/p>\n

He goes on to say: \u201cThe risk of a no-deal Brexit for the UK, EU and global economies also remains a key headwind.\u00a0 The UK government has so far not withdrawn from its threat to walk out on critical and complex talks in June if no progress is being made, despite the mass financial disruption caused by the pandemic.<\/p>\n

\u201cAnother concern should be the longer-term inflation threat.<\/p>\n

\u201cAlready bloated central bank balance sheets are about to become larger still. As with the asset purchase initiatives rolled out in the last financial crash, they come with the risk that too much cash is being produced.<\/p>\n

\u201cWhen coronavirus passes, and cash is no longer stashed in the same way, will households and firms use very cheap loans and their cash piles to turbo-charge an economic recovery into inflation?\u201d<\/p>\n

Nigel Green concludes: \u201cClearly, coronavirus remains the number one investment headwind.<\/p>\n

\u201cHowever, to safeguard and grow their wealth, it is essential that investors don\u2019t take their eye off other issues that are likely to impact their returns.\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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior To protect and grow wealth, investors need to carefully monitor other major factors \u2013 not just coronavirus, warns the CEO of one of the world\u2019s largest independent financial advisory organisations. The warning from deVere Group\u2019s Nigel Green follows last week\u2019s sharp rally in global markets \u2013 the MSCI experienced its biggest rise […]<\/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-168659","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/168659","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=168659"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/168659\/revisions"}],"predecessor-version":[{"id":168660,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/168659\/revisions\/168660"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=168659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=168659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=168659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}