Is it time to climb the wall of worry?

What’s going to affect our investments this year? The usual economic and political problems are promised, but what should investors do to maximise opportunities or avoid disasters?

There’s a “wall of worry” that is creating opportunities despite falling oil prices and turmoil in Greece, reckons Tom Stevenson of Fidelity Worldwide Investment.

But he says that UK markets may be waiting until after May’s General Election to liven up again.

“The Greek election produced an element of uncertainty and markets dislike uncertainty , but on the other side in Europe the European Central Bank is flooding the market with liquidity, which is a positive,” he says.

Then there’s uncertainty over Russia’s involvement in Ukraine, so Europe has a lot going on, both negatively and positively, he points out.

“Positive markets climb a wall of worry, so as long as there’s things for people to worry about, there are investors waiting to come in. That’s why despite all these concerns, markets are holding up pretty well at the moment,” Mr Stevenson says.

But when it comes to UK markets, it may be worth hanging fire, is his view. “Once the general election is out of the way then the increase in certainty, regardless of who gets in, will be good for markets.”

But when it comes to his favoured region at present, that’s the US. Why? “Because the economic recovery is firmly entrenched in the US,” he says.