We wanted to keep you informed in light of recent volatility in the world stock markets, mainly due to the Coronavirus pandemic.
Our recommendation is not to panic and to sit tight. Your investment has been set up for the longer term. Market volatility is unnerving and differing opinions on what the future holds, confuses matters more. But it’s important that you understand that volatility is part and parcel of investing over the long term.
‘Time in the market‘ is essential and remaining calm is imperative. It can be easy to panic when you see the value of your investments fall – it’s a very normal reaction and to think “should I sell my investments?” You’re likely to be selling after markets have already fallen and, importantly, before they rise again. This could mean that you lock in losses, and will potentially result in having less money than someone who kept their composure, and their money invested.
Periods of market volatility are a valuable reminder of the importance of diversifying investments – and your portfolio has been spread across different types of investments and geographical locations. Diversifying across investments and countries can help provide a much better balance between risk and return.
Nowadays, any important event, wherever it happens in the world, may have an effect on financial markets. You can be reassured that we, and any investment professionals that we work with, are actively monitoring your portfolios. This means that appropriate tactical changes can be considered and designed to take advantage of the opportunities presented by changing market conditions.
If you would like to speak with us, then please make contact.
Andrew & Richard
Andrew S. Turner MSc Cert CII FPFS Certs (MP & ER) and Richard Olive BA (Hons) APFS
Karrek Chartered Financial Planners
Office: 01637 853153