I personally didn’t think we would be using the word unprecedented so soon after the beginning of the credit crunch of 2008/09.
Though once again we are in unprecedented times that is effecting all us from a health and well-being point of view and from a financial position.
Like everyone else I am personally, financially and professionally experiencing the restriction and sudden change of way of life due to the Coronavirus, coupled with the worry of and concern for my elderly parents with underlying issues who will now not have their family around on Mothers Day and their 60th Wedding Anniversary the following week.
The worries and concerns of people over meeting liabilities, job security and keeping a business trading are added ingredients to this unusual period in time we all find ourselves in and we are helping clients with these worries as much as we can.
My situation is not unique and my thoughts and prayers are with all those who are being effected and understandably worried and concerned.
From a financial point of view, the pressure and concerns for investment clients is equally understandable and although I am confident we will pass through this unusual and ‘ unprecedented ‘ period, the mantra of “ keep calm and carry on “ is difficult to bear when we are seeing record drops in share values and currency rates, along with reduced bank rates.
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.
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 your approaching a specific period in time, such as retirement, quite often funds are still held invested at your date in time and accessed when required as opposed to everything being cashed in and put into a bank, at an apparent gain or loss.
The benefit of regular investing such as monthly, also comes into its own at times like this, 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 “ its 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.
I firmly believe that one thing is certain, in that there will be a recovery and being in the market at that time will be of benefit in recovering any ‘losses’.
Of course holding cash in a safe environment with FSCS protection is very important and having the right cash to invested balance based on your circumstances is as important and if you feel a review or update is needed, then we are always here for you and happy to discuss further.