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Holly Cook: While interviewing Justin Urquhart Stewart recently on his outlook for 2013, I took the opportunity to get a sneak preview of what he is going to be telling individual investors at the upcoming London Investor Show on October 26. Let's see what his advice is for investors.
Justin Urquhart Stewart: Don't panic! And absolutely just make sure that what you see on the television the entire time, which is some variation of being doomed, that actually the British economy isn’t doomed. It's damaged, and damage can be repaired. Tell people that we went through a 10-year boom, and after a 10-year boom you go through 10 years of lean. We're three years into it, we’ve got another seven years to go, get used to it. The most important thing as investors we all need to know is remember it's a cycle and in this cycle, because of the level of debt the government has taken on, the returns we're going to be getting have been squeezed down. So, you're going to be getting a greater level of volatility and a lower level of longer-term return. This will change in due course, but Quantitative Easing has skewed what’s going on. So people need to adjust their planning for this ‘new normal’ of a lower, slower world. It doesn’t mean it stops, it just means we have to learn to live in the new world.
Cook: Thank you Justin, that's very encouraging.
Stewart: My pleasure, thank you.
