IN recent weeks, and not for the first time, the Bank of England Governor Mark Carney has seemed to deliver contradictory messages about interest rates.

On the one hand, he told an audience “now is not yet the time” to raise interest rates.

On the other hand, just eight days later, he said “some removal of monetary stimulus is likely to become necessary”.

However, the two statements are not as divergent as they seem.

It has been pointed out that Mr Carney’s statements can easily be misinterpreted if taken out of context.

If you look at the statements in full, there is a clear message: the Bank of England Governor does not appear to be in a hurry to raise interest rates.

With no immediate prospect of higher rates on the cards, savings rates are likely to remain extremely low.

For those willing to move up the risk ladder, there is the potential for higher rewards from investing in equities.

However, some investors are getting nervous as stock markets here and in the US bump around their all-time highs.

Post-election financial uncertainty and ongoing questions around what Brexit means are adding to the sense of caution.

Analysis by Brewin Dolphin’s research team, suggests such fears are best put aside.

Staying invested - even around deeply troublesome periods for the market - remains the best tactic over the long term.

Missing only the best five days in the market in the past 20 years would have led to a 23 per cent lower overall return.

Missing the best ten days would have reduced returns by a staggering 40 per cent.

Conversely, missing the 20 worst days would have led to double the returns of staying invested all along.

What we can say is that large corrections, or severe bear markets, are usually associated with US recessions.

And while recessions are relatively hard to foresee, we do have indicators, which we use to forecast roughly when they are likely to occur.

Currently, our analysis suggests the US is relatively late in its economic cycle, but is still two or three years away from a recession.

Although we expect a mid-cycle slowdown this year, it is likely there is time to profit ahead of any big downturn.

Indeed, historical analysis shows some of the best years to invest are just ahead of market highs.

Looking at the bear market surrounding the financial crisis in 2008, you would need to have been incredibly prescient to time investments correctly. The best year to invest was 2009, when the market bottomed, as you might expect.

But it was only marginally better than investing in 2006 and remaining invested, even though this was just a couple of years before the crisis and only a year before the credit crunch began.

Brewin Dolphin’s experienced analysts are constantly monitoring the market and economic data, looking to make some judgement calls to move money from one asset to another to capitalise on market sentiment.

This tactic has served us well and we have outperformed our benchmark index in 11 out of the last 13 years, through judicious use of award-winning research and asset allocation strategies.

Right now, therefore, we judge it to be better to stay invested, and allow investment managers to snap up undervalued shares or switch into alternative assets on a selective basis - as and when market conditions permit - to squeeze out extra returns.

That said, it still makes sense for investors to attempt to reduce risk by having a wide geographical exposure: to ensure that your portfolio is properly diversified.

Neil McLoram works in business development at wealth management firm Brewin Dolphin, based in Newcastle.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. The information contained in the Brewin Dolphin Family Wealth Report is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The value of investments can fall and you may get back less than you invested. The information is for illustrative purposes only and is not intended as investment advice.