Investment Opportunities in 2024: Insights from Wealth Managers in the UK and Europe
As the possibility of a change in the UK government becomes increasingly likely, investors are looking ahead to potential investment opportunities in 2024. Frédérique Carrier, head of investment strategy at RBC Wealth Management in the British Isles and Asia, along with other wealth managers, shares insights on what to expect in the coming year.
With the Labour Party leading in the UK opinion polls, many wealth managers anticipate a victory for Keir Starmer’s Labour Party in the upcoming general election. Carrier highlights Labour’s proposed policies, which include stimulating growth through infrastructure projects, resetting relations with the EU, and increasing investment in green industries, healthcare, schools, and childcare. The party also plans to close tax loopholes and increase specific taxes to fund its initiatives.
In terms of asset allocation, Carrier sees opportunities in high-quality large-cap UK stocks, domestically focused UK companies, and potential takeover interest in UK firms. She also discusses the political landscape in Continental Europe, particularly in France, where the outcome of the legislative elections could impact the region’s stability.
As investors navigate the uncertainty surrounding the elections, wealth managers like Mark Haefele at UBS Global Wealth Management emphasize the importance of maintaining a long-term investment strategy and focusing on quality assets. Despite potential political instability, there are opportunities for investors in select investment grade bonds and high-quality European stocks.
Ultimately, the key takeaway for investors is to remain focused on the long-term and avoid making knee-jerk reactions based on election outcomes. By staying diversified and prioritizing quality investments, investors can position themselves for success in 2024 and beyond.
