PROMOTION Investors ride out rollercoaster year There have been plenty of ups and downs in the pandemic-hit equity markets, but what does 2021 hold for your portfolio? 020 has been somewhat of a rollercoaster ride for markets. remains constrained until a vaccine term as developed world activity - After large drops in March, markets have recovered strongly. As asstructural growth prospects we start to look beyond 2020 though, are underpinned by urbanisation what kind of a world do we now is rolled out and in the longer term trends, growing middle classes and Innovative workforces. live in? What will be on the news now we have seen a Brexit solution, Donald Trump no longer occupying We believe, now more than ever, that it is imperative to be highly the White House and if we start to see the back of Covid-197 Without selective in which stocks to invest in. On the one hand there are new strains of the virus rendering vaccines ineflective it is difficult to stocks that, on the face of it, look cheap but ultimately repeated as well as an investment story. see the panic of last year repeating lockdowns and people's changing habits will cause to fail. On the When there is a high prevalence of euphoric private investors it is important to exercise caution and One never knows what is around the corner though. If there is one of our investment principles that has never been truer than last year, it is that it is imperative to prepare for all scenarios and ride the dips when they come. When the rollercoaster takes a dive it usually opens up a plethora of opportunities. We remain cautious on the other hand, there are areas of global markets that are potentially in late 1990s type bubble territory. These market conditions happen when stocks or sectors escape from valuation constraints and not chase the latest fads. We are still finding some great opportunities in unloved quality stocks and are excited for prospects in the coming year and decade. With unemployment and output gaps resulting from Covid-19, it is unlikely we will see significant inflation in the short term. When the only driver becomes liquidity. In these conditions, prices can keep increasing just as long as the liquidity keeps on flowing. There is evidence of such stocks and sectors economic outlook for most of the western world. Doubling down on economy crippling lockdowns, crazy money printing and unprecedented expansions in government debe mean heightened riskand a grim economic outlook when compared with countries we look beyond this, particularly when we take into account all currently in loss making (or not significantly profit making) tech and green energy stocks that have a story that retail investors can relate to. Access through cheap apps has made self-investing much more prevalent so private investors, partikularly millennials, are the stimulus, inflation becomes a risk- particularly to those in zero or negatively yielding bank accounts and government bonds. We are much more comfortable in asset that have navigated the virus much more effectively such as China, which is now broadly "normal" on all its policy settings There is compelling reason to believe that Asia can outperform in the near classes that we expect to give clients inflation beating returns over their investment period. Our message, as it was when markets bottomed, becoming much more important actors in the pricing of such shares. Professional investors are much is stay the course and capitalise on opportunities as they arise, more likely to consider valuation 8 Berry Lane, Longridge, Preston, Lancs, PR3 3JA 01772 780300 www.ribblevalley.raymondjames.uk.com RAYMOND JAMES | Ribble Valley PROMOTION Investors ride out rollercoaster year There have been plenty of ups and downs in the pandemic-hit equity markets, but what does 2021 hold for your portfolio? 020 has been somewhat of a rollercoaster ride for markets. remains constrained until a vaccine term as developed world activity - After large drops in March, markets have recovered strongly. As asstructural growth prospects we start to look beyond 2020 though, are underpinned by urbanisation what kind of a world do we now is rolled out and in the longer term trends, growing middle classes and Innovative workforces. live in? What will be on the news now we have seen a Brexit solution, Donald Trump no longer occupying We believe, now more than ever, that it is imperative to be highly the White House and if we start to see the back of Covid-197 Without selective in which stocks to invest in. On the one hand there are new strains of the virus rendering vaccines ineflective it is difficult to stocks that, on the face of it, look cheap but ultimately repeated as well as an investment story. see the panic of last year repeating lockdowns and people's changing habits will cause to fail. On the When there is a high prevalence of euphoric private investors it is important to exercise caution and One never knows what is around the corner though. If there is one of our investment principles that has never been truer than last year, it is that it is imperative to prepare for all scenarios and ride the dips when they come. When the rollercoaster takes a dive it usually opens up a plethora of opportunities. We remain cautious on the other hand, there are areas of global markets that are potentially in late 1990s type bubble territory. These market conditions happen when stocks or sectors escape from valuation constraints and not chase the latest fads. We are still finding some great opportunities in unloved quality stocks and are excited for prospects in the coming year and decade. With unemployment and output gaps resulting from Covid-19, it is unlikely we will see significant inflation in the short term. When the only driver becomes liquidity. In these conditions, prices can keep increasing just as long as the liquidity keeps on flowing. There is evidence of such stocks and sectors economic outlook for most of the western world. Doubling down on economy crippling lockdowns, crazy money printing and unprecedented expansions in government debe mean heightened riskand a grim economic outlook when compared with countries we look beyond this, particularly when we take into account all currently in loss making (or not significantly profit making) tech and green energy stocks that have a story that retail investors can relate to. Access through cheap apps has made self-investing much more prevalent so private investors, partikularly millennials, are the stimulus, inflation becomes a risk- particularly to those in zero or negatively yielding bank accounts and government bonds. We are much more comfortable in asset that have navigated the virus much more effectively such as China, which is now broadly "normal" on all its policy settings There is compelling reason to believe that Asia can outperform in the near classes that we expect to give clients inflation beating returns over their investment period. Our message, as it was when markets bottomed, becoming much more important actors in the pricing of such shares. Professional investors are much is stay the course and capitalise on opportunities as they arise, more likely to consider valuation 8 Berry Lane, Longridge, Preston, Lancs, PR3 3JA 01772 780300 www.ribblevalley.raymondjames.uk.com RAYMOND JAMES | Ribble Valley