The Environment is Changing
Since the financial crisis, monetary policy has been the stimulus of economic growth and financial market stability.
However, this era is drawing to a close and, as the incremental benefits fade and the schism between the political establishment and the electorate widens, a new unpredictable economic and political framework is emerging.
In this new Age of the Unexpected, investors are facing new opportunities but also an investment environment that is more volatile with potentially lower absolute returns.
In this environment, the risk is primarily that of not meeting one’s investment objective. Thinking of risk in these terms requires a change of the mind-set from a market-led investment approach to seeking out a more outcome-oriented approach. The aim is to identify those investment solutions (or combination thereof) best suited to meet individual investment goals, maximising the probability of achieving the desired outcome.