Slightly more than half of advisers are positive about their clients' investments in 2024, according to the latest FT Adviser Talking Point poll.
Advisers were asked: How optimistic are you about your clients’ investments in 2024 amid fears of a mounting recession in the UK?
Almost half (48 per cent) said they were hopeful, just 6 per cent said they were optimistic, 12 per cent said they were pessimistic, while a third (33 per cent) were neither optimistic nor pessimistic.
Samuel Holgate, an independent financial adviser at Mather and Murray Financial, said: “Investments should perform well globally in 2024, with the caveat of geopolitical uncertainty. As the cost of capital reduces when central banks start reducing rates, [due] to lower inflation but also stagnant economies, stock prices should start to increase.
“Shares on the UK market and wider European bourses should be best placed to do well. Although looking much later in 2024 there would be a Santa rally [when stock markets might report positive results in the run-up to Christmas season] in the US if there is a clear decisive election victory for either side.”
Gary Bush, financial adviser at MortgageShop.com, added: “Factors affecting 2024 being the expected good investment environment are numerous, from the global decreasing inflation situation, the Ukraine and Middle East conflicts easing and not expanding their activities, the UK and US elections landing without too many bumps, and the cost of capital following predictions of a downwards trajectory.
“Speaking of the UK solely, decent returns on shares and property stock held collectively or individually should bring good rewards."
Meanwhile, Wes Wilkes, chief executive of Net Worth NTWRK, said that while sentiment had become more positive towards the end of 2023, the investing environment was challenging in 2024, with an expected slow down in global growth.
He added: "In the US we will need to see earnings growth that justifies the multiple expansion we saw in 2023, and while European equities seem cheap, that doesn't always mean they are a good buy.
"With all that said, the reality is that inflation and rates remain the key influences on investment markets, particularly in H1. H2 could be more constructive an investment environment as expected rate cuts start to come through. Japan remains attractive and is proving less volatile thus far in 2024."
