Briefing Note
Exploring investment opportunities in the current economic climate
03 Nov 2022
We recently attended the excellent LGC Investment Seminar Scotland 2022, where Iain Campbell gave a presentation on the investment opportunities that he sees in the market for the LGPS. For those who were unable to attend, Iain has provided a snapshot of his presentation in this briefing note.
10 years of market doom and gloom
Over the last 10 or so years, up to the beginning of 2022, there’s been a lot of doom and gloom around markets. This has been driven by how expensive everything has looked, leading to predictions of extremely subdued future returns.
Then 2022 came around…
… and things changed very quickly. Doom and gloom still raged, but it was a different kind of doom and gloom. For the first time in a very long time, inflation reared its ugly head.
Key messages in this briefing note include:
- Markets have been expensive for years, with constant projections of low future returns.
- Recent rapid rises in inflation and interest rates and the ensuing market volatility have changed the market outlook markedly.
- Whilst there is plenty of risk out there, this volatility has presented a range of opportunities for investors.
- As a long-term investor, the LGPS has the ability to not only ride out these more difficult periods but capitalise on them for higher longer-term returns.
Make sure you’re pressing your investment consultants and advisers on how you should be turning this market doom and gloom into investment opportunities for your Fund.
If you have any questions on anything covered, please get in touch.
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