Peace on earth, can it be?’ As Bing Crosby and David Bowie famously sang many years ago, peace is an ideal which will resonate particularly strongly with many of us this year, perhaps more so than for many years.
No longer can peace be something we take for granted. The invasion of Ukraine and the horrors of war have reminded us of that, as its impacts have been felt in so many ways. Most notably of course, have been the massive energy shock not seen since the 1970s and rising food prices. But, with the festive season just around the corner, our thoughts turn to those brave people of Ukraine whose fortitude and resilience in the face of such an ugly, cruel war has been an inspiration. We can only hope for a speedy resolution and return to peace, whatever that may look like.
A global crisis
As we look to 2023, the outlook for the global economy is decidedly challenging. Clearly, this presents problems for financial advice businesses looking to ensure that clients’ financial plans are as robust as possible in the face of a cost of living crisis and high inflation.
Not only does the war in Ukraine continue to impact trade, especially in Europe but China’s ongoing Covid lockdowns are putting added pressure on supply chains.
Here at home, the Bank of England has warned that the UK economy risks being plunged into the longest recession for over a hundred years as they forecast the economy shrinking for eight consecutive quarters. Europe is also feeling the chill winds of high inflation and declining business activity as recession fears loom large. The US is by no means immune to the global slowdown. There are signs that the jobs market is tightening and growth slowing as recession fears bite on the other side of the pond. According to the OECD, the major Asian emerging-market economies are expected to account for close to three-quarters of global GDP growth in 2023. Asset allocation decisions remain focused on the long term as investors look to maintain the real value of capital in the face of double digit inflation.
Your IFA Magazine
As you turn the pages of this final edition of IFA Magazine for 2022, you’ll discover the usual mix of opinions, insight and analysis. Of course I thank all our contributors, not just in this edition but throughout the year. Our focus is always on delivering a broad range of perspectives, of the themes affecting financial planning professionals, whether it’s mental health and wellbeing or multi-asset investing! We’ll be back again in the New Year with the February 2023 edition published at the end of January.
In the meantime, on behalf of our whole team here at IFA Magazine, I wish you and yours a relaxed and peaceful festive season and a happy and healthy New Year.
As for peace on earth? I’ll revert to Bing and David’s words as we must live in hope that ‘Years from now, perhaps we’ll see’.
Editor, IFA Magazine