At the time of writing this article, the weekend press has been sharing a very gloomy outlook for the global economy triggered by the COVID-19 pandemic and the measures taken by Governments to help contain this nasty virus.
It is worth noting that since the last major financial crisis, the S&P 500 from March 2009 was up by 400pc from 2009 to 2020 and, with the notable exception of our own FTSE 100, the rest of the major indices were not too far behind.
Since their relative peaks on 17th January and 20th February, the FTSE 100 and S&P 500 have both fallen @ 34%.
Volatile markets are always challenging for long-term investors, more so for investors approaching retirement or in retirement.
During the past couple of weeks, we’ve seen some sharp falls in share prices as markets try to assess the potential impact of coronavirus. No doubt your pension and investments have taken a “hit” and you are likely to be feeling more than a little nervous at present as Governments and Central Banks are trying to support their countries with monetary and fiscal stimulus. These measures are designed to provide you with some reassurance, but investors are not listening and just “want out”.
However, markets will turn so sit tight and don’t panic.
Successfully managing investments in volatile markets requires a level-head. The Investment team at Richmond House are constantly evaluating the situation and making tactical changes to their portfolios using a broad spectrum of different asset classes. Whilst sitting tight, you may wish to go back to basics and re-evaluate your long-term plan. Is your investment strategy still right for you? We can assist with a no obligation review of your investment portfolios.
To learn more contact our office directly on 0333 241 3350
Nigel Taylor Cert PFS, Dip FA