Risks to Watch Out for Investors in 2018


Financial / Saturday, December 16th, 2017

The year 2017 has been a great year so much so far. However, now it has entered into its completion, so financial investors and the institutional investors are anticipating about the next year. In 2017, we are experiencing an economic growth of 3.8 percent, which is way more than at 2016 i-e 3.1 percent. With the advent of the year 2018, the investors are of the view that it could likely to grow at the same rate.

However, there are also some low points or downturns that are worrisome for the investors and analysts. The high inflation rate and then the resultant tighten policies have created an environment of distrust regarding the investments. Not only this but also the tense middle east and North Korea airs have posed a continuous threat to the stability of the market in 2018. Never to mention the last but not the least risk, the fall of a big elephant. Have you ever thought what would happen if China becomes unable to handle the debt? Well, investors warn a never expected slowdown of the economy would be the result.

This piece of writing is all about the risks that we might have to face in the coming year 2018.

So first let’s look at the first potential risk of the advisors’ i-e high inflation rate. Keeping in view the events back in 2008, now the financial regulators are more stringent towards such events. Moreover, the likely tighten regulatory policies are going to upset the investment free mode.

On the other hand, the tensions rising in North Korea and Middle East countries are shifting the attention towards some global disturbance which is more likely to influence every state in the financial span. If any such situation occurs then it is not going to be limited to that particular region, especially in case of North Korea which is indicating towards Nuclear War.

However, what about the rising superpower? China is expanding its roots in almost all directions of the world and already secure of the spot of the world next superpower. It has been based on the extensive debt base which is keeping China moving towards achieving its ultimate power goal. So what it the support get displaced? What if the debt handling of China goes wrong? The various what-ifs like the above are making investors doubting the economic growth of 2018.

However, if we talk about the planning services, according to the study by Cerulli associates, most of the planning was adopted by millennial advisors. The study compared the three generations of investors and concluded that as compared to the Generation X and the Baby boomers, 83 percent of the millennial investors use the planning services. The rising awareness and the adoption of planning services by the millennial advisors is because of the latest boom in comprehensive planning. Now the advisors belonging to that particular generation adopt the planning structure at the initial stages of their careers along with practices.