MANY savers will be wondering what will happen to their investments in 2015. Here are some predictions.

A major uncertainty is the Euro zone and what the European Central Bank will do to hold it together and stimulate growth.

Any new monetary stimulus from the European Central Bank early next year should lift the UK and European stock markets.

However, those gains could quickly fizzle out as the British election approaches. Most opinion polls put the opposition Labour Party neck-and-neck with the Conservatives. Many doubt that either party will gain a majority, leading to another coalition government. The uncertainty around the May election will cause the market to remain volatile until the result is known.

Most opinion polls put Labour neck-and-neck with the Conservatives. Many doubt if either party will win a majority and another coalition government seems a likely outcome.

Any market gains made early in the year could quickly fizzle out as the election approaches.

It is worth remembering that the period leading up to the recent Scottish referendum was a very jittery one for the market and it is likely that we will get the same again. Right now there is simply too much uncertainty for anyone to guess. Most institutional investors seem to be working on the assumption that the FTSE will remain broadly near this year’s average until the middle of 2015, after which it is likely to rise to just over 7,000 by the end of the year.

By contrast, 2014’s high point was a fraction over 6,900 in early September but the market quickly dropped back as investors took profits. At the time of writing it is around 6,300 with much uncertainty due to the falling oil prices, the dramatic impact loss of oil revenue and economic sanctions are having on the Russian economy, the Euro Zone, and the ongoing problems in the Middle East and Ukraine.

The consensus forecast is that we can expect gains of around seven per cent by mid-year and over ten per cent by the start of 2016.

The New Forest Investment Club is a private and independent club that caters for those interested in managing their own investment portfolio. It tries to take some of the mystery (and risk) out of investing.

If you would like to find out how it does this you are welcome to attend one of its meetings. There is no charge and no obligation.

Contact newforestinvestment club@gmail.com for details.