Winter Investment Outlook

Looking ahead - An introduction from our Chief Investment Officer Michelle McGrade

We say goodbye to 2016 and look forward to 2017. Last year was a good year for investors, especially those who held their nerve and stayed invested throughout the earlier market turmoil.

My concern for this year is focused on how sensible we are all being about planning for the future. Are we investing enough and are we clear about our long term goals?

It struck home with me a couple of weeks ago when I read that Mick Jagger has become a father again at the ripe old age of 73. He talks about touring with the Rolling Stones when his son is 21 – that would make Jagger 94. Jagger should inspire us all as he certainly doesn’t let age get in the way of enjoying life to the full.  He keeps working to pay for his lifestyle – how are you going to fund yours?

No matter if you are 20, 30 or 55 years and over (55 being the magical age from which you can take your personal pension) you need to think about the possibility that you will also reach 94 – and maybe even beyond - and will probably want to enjoy life like you do now.

I meet many people who are too nervous to invest and have cash sitting in bank accounts or cash ISAs earning nothing. Keeping hold of cash is becoming a problem – we have inflation creeping into the economy again which, as it is higher than interest rates, will eat your cash balances like moths in your wardrobe. Others think that someone else will bail them out.

My message to all of you is to take action now. The simple answer is to set up a regular investment account and invest in your pension and your Stocks and Shares ISA. This takes the emotion out of your decision making and sets up a routine that is hard to break. I know you are concerned that the market goes down as well as up but over your lifetime the market will go up, not withstanding a few major wobbles along the way.

I am reasonably positive on the outlook for markets this year, mainly because both the US and UK governments are planning on spending money to make both countries “the place to do business”. The knock on effects should be good for everyone. Yes, there are headwinds. The elections in Europe could upset the European Union as we know it and the catastrophic wars in places like Syria are deeply troubling. The world is never a 100% perfect place unfortunately.

I hope our Winter Investment Outlook provides you with some inspiration and the confidence to invest and to take control of your finances before 5 April.

- Michelle McGrade, Chief Investment Officer, TD Direct Investing

Important Information

The information we provide in this Investment Outlook are opinions provided by TD or one of its partners on whether to buy a specific investment. None of the opinions we provide are a personal recommendation, which means we have not assessed your investing knowledge and experience, your financial situation or your investment objectives.

Investors should be aware that with self select products or services the the value of investments can fall as well as rise unlike cash investments. You may get back less than you invested. Past performance is not a reliable indicator of future performance. 

If you are unsure about the suitability of a particular investment you should speak to a suitably qualified financial adviser.

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TD Recommended Funds Update

In light of these market conditions, find out how our TD Recommended Funds performed in the fourth quarter of 2016 – there were some excellent performances amongst those on the list. You can also find out how each of the funds has performed over the last few years.

Our fund recommendations are the result of a good deal of detailed work and drawn from the whole of the market, with Morningstar providing unbiased, in depth research that is analysed by our own Investment Team. All recommendations are presented to and approved by TD Direct Investing's Investment Committee.

Remember that each fund is unique and hence exposed to different levels of risk. Some are relatively low risk, whilst others can be very risky and those will only be appropriate for more sophisticated investors.

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