News
By Michael Mitchell.
Whilst none of the pundits are predicting an easy 2012, if, as they say, the darkest hour is just before dawn, then there may be cause for optimism. I think that stock markets will rebound if some sort of viable programme emerges to tackle the immediate problems of the Eurozone. And UK plc is not in bad shape at the moment. Balance sheets are much more robust than they were in 2008 and earnings have been resilient. The market currently sits on some of the lowest P/es since the bleak days of the first oil shock in the 70s which was followed by double digit investment returns. Equity funds have increased their cash weightings over the last twelve months so there is pent up demand if optimism returns. And well it might. UK inflation is set to moderate quite quickly in the New Year as the increase in VAT drops out and the welcome strengthening of Sterling will help to moderate commodity price inflation. And with the weather staying mild, even growth statistics may be flattered if we don’t have a hard winter. As we move into the spring, Jubilee and Olympic fever will contribute to the feel good factor. Hotels will be full and taxis unobtainable – so probably not a clever idea to arrange investor meetings in London in July and August!
Whatever the outcome, I think IROs will be busy in 2012. In volatile markets investors seek more granular information and it is very important that you keep your story fresh. IROs will play an increasingly critical role in keeping Boards apprised of investor sentiment.
I see the role of IR continuing to grow in importance and IROs will need to make sure that they maintain their professional competency. Clearly the best way to do this is to attend some of the Society’s events and professional development courses. As professionals you owe it to yourself to keep up to date and we recommend that you complete 20 hours of CPD each year. This equates to only 2.5days a year out of the office. So make a New Year’s resolution to do more with your Society and book your place now for the Investor Relations Society’s conference ‘The Competition for Capital’ which will take place on 22 May!
Best wishes for a prosperous 2012.
Published: 5 January, 2012