Supporting your clients through a UK recession

On 15 February, the Office for National Statistics confirmed that the UK economy had contracted for a second consecutive quarter in Q4 2023 – the technical definition of a recession.

Hearing the news may have led to concerns, but we believe this does not necessarily mean it is bad news for investors. We discuss the reasons why in our latest article. 

A quick summary is outlined below:

• Economic data indicates the recession will be shallow.
• The prospect of the UK falling into recession has been well trailed and should be largely reflected in market pricing. Markets tend to act as a forward-looking indicator, this is one of the reasons that, when you look at history, investors have often been better off investing through a recession instead of waiting for it to end.
• HRIS portfolios take a diversified approach to global markets with the aim of giving greater predictability of future returns and ultimately enhancing customer outcomes. 

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