As investors we’re constantly told that ‘markets can go up as well as down’. But if you’ve forgotten the last part, it’s probably because 2017 was a year of almost all up and very little down.
Not only did most stock markets hit new record highs, they did so with very few shocks along the way.
It was a year in which the dogs didn’t bite – or even bark – for that matter. Despite all the dramatic headlines around the Trump presidency, Brexit negotiations and North Korean sabre rattling, concerns over political risk were never realised.
Maike Currie: If wage growth finally picks up we could also see an unexpected rise in inflation
4. Prepare for higher inflation
Wage growth has been paltry for almost a decade now, but if this changes we could see inflation start to pick up. Now might be a prudent time to add a bit of inflation protection to your investment portfolio.
Maike Currie is investment director at Fidelity International and the author of The Search for Income – an investor’s guide to income-paying investments.
The views expressed are her own. Follow her on twitter @MaikeCurrie
Gold has long been seen as a useful hedge against the wealth-eroding effects of inflation.
The Investec Global Gold Fund provides an effective way to gain exposure to the yellow metal via a diversified portfolio of gold mining company shares.
Co-managers George Cheveley and Hanré Rossouw can also invest in physical gold ETFs and companies which mine for other precious metals.
Alternatively, if you want to buy a slice of physical assets that could rise with inflation while still maintaining exposure to the stock and bond markets consider a multi asset fund which can blend equities and bonds with assets such as commercial property and commodities to cover most bases.