This update is an overview of Spectrum’s thoughts on the current volatility and uncertainty that exists in the investment market at this moment in time.
The worries and concerns of people over meeting liabilities, job security and keeping a business trading, along with rising inflation and interest rates are all ingredients that add to the anxiety that some are experiencing.
Spectrum Independent’s investment and savings philosophy has always been to establish the reason for the savings and to then align this with a client’s overall attitude to risk and personal bigger picture.
Attitudes to risk can change over time and are also subject to the amount you have saved and invested and certain points in life that we all reach.
Whenever you invest in the stock market whether via ISA’s, Bonds, or Pensions etc most people understand it’s not a short-term investment and there will always be periods of volatility and major worldwide events which will affect market conditions, some worse than others.
You only have to look at the market drops in the early days of Covid in March 2020 and then look at the upturn of the markets in the remainder of 2020 & into 2021 and if you had cashed in when the market dropped you would have never experienced or benefited from the upturn.
Investing should never be viewed as a short-term project unless you are very experienced or employ a specialist to help you to get in and out of the market at ‘hopefully’ the right time. This is not something I have ever personally got involved in and equally professionally Spectrum hasn’t.
By holding your investments over the medium to long term, gives you the ability to ride the ups and downs and having your attitude to risk and investment strategy reviewed on a regular basis will help you keep calm, albeit sometimes it may take longer to recover than other periods.
The modern way of holding invested funds also means there doesn’t always have to be an end period, as if you’re approaching a specific period, such as retirement, quite often funds are still held invested and accessed when required, as opposed to everything being cashed in and put into a bank, at an apparent gain or loss.
At times of volatility, the benefit of regular investing such as monthly, cannot be ignored, as your regular investment is buying shares/units at a cheaper price and then when the market up turn arrives you have more shares/units at a higher price and thus more value.
There is an old saying that “ it’s time in the market and not the timing of the market “ that’s important and trying to guess the right time could equally be as expensive as getting out of the market.
Of course, holding cash in a safe environment with FSCS protection is very important and having the right amount of cash balanced against your investments based on your circumstances is just as important.
With any investment or savings priority, reviewing on a regular basis is vital and as always, we are only a telephone call or email away and if you have any concerns or worries over your savings, investments and even mortgages and personal liabilities then please do not hesitate to contact us, and we will always do our best to help.