0333 241 9900

News and Articles

An overview with Guy Myles

2017 Market Review

Guy Myles, 22 February 2018

2017 was a year to remember for both global financial markets and our portfolios.

Investors focused on the positives in 2017; with strengthening economic data and easy monetary conditions helping risk-assets increase in value. Politics was a clear headwind in Europe - think the stop-start Brexit negotiations and Dutch, French and Germans general elections. But, this all failed to derail the positive market sentiment, and 2017 saw UK equities deliver a 13.1% return in sterling terms, and global equities 13.2%.

Even better was the return from emerging market equities; which rose 25% over the year.

The above is a very strong return, and investors must be mindful that future returns are likely to be lower.

While equity markets soared ever higher, bond markets generated only small positives for investors in 2017.

Debt markets are most influenced by central bank monetary policy, and 2017 saw the third interest rate hike by the US Federal Reserve since the 2008 Global Financial Crisis. This caused US Treasury yields to rise to 2.4% - remember bond yields act inversely to prices.

Closer to home in the UK, the Bank of England initiated its first rate hike since the global financial crisis. While tightening monetary policy tends to be negative for bonds, UK gilts delivered a positive return in the year due to uncertainties around future growth and inflation.

However, all-in-all, 2017 was a continuation of the positive market sentiment that we've seen over the past five years.

Guy Myles Chairman, Flying Colours Investment Committee


Categories: Market Commentary

Related Articles

COVID-19 Update - FCL Response

16 March 2020 / Peter Wilson

Investment Commentary: February 2020

17 February 2020 / Guy Myles

Book your free consultation

Friendly, approachable and no pressure

Cookie Preferences

Select the cookies below to help us personalise and enhance your experience on this site. We will remember your choice for 90 day, but you can change your mind at any point by clicking the manage cookies link in the footer of our website.

For more details on the exact cookies we use, please read our privacy policy.

Necessary cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website and use our services. We also have contractual obligations with paid traffic sources where we are required to provide statistics on conversions. We use cookies to track this.

Always Active

Performance (analytics) cookies

We use performance cookies to gain an understanding of how people discover and navigate our website, and on which type of device. This helps us to improve our website by making informed decisions on real world data.

Targeting cookies

These cookies are set through our site by our advertising partners. They enable us to track the effectiveness of our advertising so that we can target our marketing spend in the most cost efficient way. Some advertising partners may choose to show you adverts on other sites relevant to you based on your browsing.