Entering 2024, political uncertainty dominated the outlook. With a Labour majority confirmed here and Donald Trump back in the White House, those questions are in the rear-view mirror. But the investment environment, at least in the UK, remains the same. Valuations are still near historic lows and takeover activity remains rife.
The broader macroeconomic environment appears to be settling into a pattern of moderate growth as central banks remain in rate-cutting mode. Consensus projections hover around 1.3 per cent real GDP expansion for the UK this year, outpacing some European economies but trailing the US.
On the flipside, inflation appears to be ticking back up, the Budget has dented both business and consumer confidence, and the potential impact of US tariffs on UK exports looms large. Even so, brokers have plenty of options to play to these scenarios with both fund and stock picks.