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“It might be a small stretch of water, but the Strait of Hormuz is something rarely far from the minds of anyone who follows geo-economics. The speed at which tanker traffic has halted and translated into supply bottleneck concerns goes to show its importance to energy markets.” – Hetal Mehta, Chief Economist, St James’s Place.
St. James’s Place has created the below animation to show you the potential impact of the situation in the Strait of Hormuz. This is not to predict what will happen, rather the role of investment specialists, from economists to managers, is to stay abreast of these issues and understand the dynamics. After all, a key element for them, as well as us as advisers, in being responsible for looking after your money is ensuring we are alert to the events and dynamics that could lead to a financial impact.
St. James' Place disciplined framework is designed to evaluate and capture opportunities where they support long-term outcomes – which we hope reassures you. Because our experts take a long-term investment view, changes had been made to prepare portfolios for scenarios such as we see today. This means they can avoid being overly reactive when uncertainty increases.
Joe Wiggins is St James’s Place Investment Research Director. He says:
"Traffic around the Strait of Hormuz and its impact on energy markets are unsurprisingly at the centre of investor attention. The sharp swings we have seen in natural gas and oil prices highlight just how fast moving and sentiment driven this environment is.
“While such a febrile backdrop can be difficult for investors to navigate, our focus remains on following our process in a disciplined fashion and being alert to the opportunities and risks that may arise.”
The value of an investment with St. James’s Place may fall as well as rise. You may get back less than the amount you invested. Past performance is not a guide to future performance.
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