It’s been almost 12 weeks since my colleague, Gary Mothersill’s blog about the market turmoil at the start of the coronavirus pandemic. In that time, whilst the lockdown and social distancing have meant little seems to have happened in our own lives, it has been an interesting time for investment markets across the globe. By early June, the FTSE 100 Index had recovered a large share of its earlier losses and, in the US, the S&P 500 Index was largely back to the same level as it started at in 2020. But events this week have seen some further, albeit smaller, setbacks and many investors may be feeling more nervous again about their portfolios and wondering whether they should simply cash-in and ‘cut their losses’.
This is a normal human reaction to such volatile conditions but, at times like these, it is important to take a step back and think about the wider picture. If you’ve planned your portfolio for a longer term aim, such as retirement savings or just to have additional capital or income available to you at some unknown point in the future, and these objectives haven’t altered our advice is normally to sit tight and let things settle down. In essence, why change a well-planned long term strategy simply because of short term events?
Of course, there may be changes in your own circumstances that mean these plans need to be reviewed and, in some cases, altered. But before taking such a significant step, it is worth speaking to an independent financial adviser as they have the ability to view things objectively. If you are feeling nervous about your investments and wish to discuss your options, please contact Gary Mothersill or I; we’ll be happy to chat things through.