Staying the course during market uncertainty

These are volatile times for global stock markets. As the coronavirus dominates the news, the economic impact has led to some market uncertainty. We’ve also seen the Bank of England take the extraordinary step of reducing base rate to 0.25%.

As you’ve come to expect from us at all times – we continue to closely monitor your funds on your behalf.

Managing uncertainty

When you invested with us, your adviser will have helped you to set long-term financial goals so you can invest in a way that’s right for your circumstances. It’s important to keep those original investment objectives in mind when you see reports of markets going down. It’s at times like this that you should especially keep your financial goals in mind.

Time not timing

Investing can be very rewarding. Along the way, there will be times like now when markets fall. But history teaches us some important lessons.

Take the last three significant market falls as an example:

  • As you can see, in the years that followed these low points, markets have fully recovered and gone on to produce strong gains.
  • This shows why you should keep your financial goals in mind at all times.
  • Of course, it’s always concerning when markets fall – but if you’re ever feeling concerned, we’re here to answer any questions you may have.

Past performance is not a guide to future returns. Economic and market conditions experienced in the past may not be repeated in the future.

Fundamentally, whatever your investment outlook, if your objectives and circumstances haven’t altered, recent market events are no reason to change path now.

Looking ahead

Whilst the market uncertainty of early 2020 can feel unsettling, it’s important to keep in mind your initial reasons for investing. To an extent, there will always be uncertainty in markets. But that can also create opportunities.

The bottom line is there are always wider factors – domestically and globally – that can affect the performance of your investments. There will always be ups and downs in markets, but these can also create opportunities.

Of course, if you have any questions about your investments, we’re always here to help you. Simply call our Premier Service Team on 0800 085 0459.

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