Economic downturns, recessions and pandemics all lead to confusion, uncertainty and often panic. The financial markets are tested to the limits. Here are some key things to remember in times of investment uncertainty.
First, don’t panic. Easier said than done, but knee-jerk reactions can lead to much worse in the long term. There are several key things to consider in the cold light of day. Open this infographic HERE for a clear picture of the things we should all consider.
Follow the science and the data. Market recover, and the global network has strengthened in recent decades after a series of challenging periods. Governments, banks and investment companies are now better set up to respond.
If you need to reset, just think of the thorough planning process you have been through with your independent financial adviser. You considered risks and you built in unexpected events to produce a long-term plan. Stick to the objectives you set out.
Don’t follow the daily market updates, as the media often focuses on the extremes. A steady day is not a news day for journalists. Instead, focus on comparable benchmarks. With good advice you will have developed a diverse portfolio. That will help to ride out some of the extreme ups and downs.
Second guessing the markets is almost impossible. So many factors change each day. Trying to time entry and exit into certain markets is unlikely to help your longer-term objectives. Staying invested is the best advice.
Please be aware the value of investments or income from them can fall as well as rise. We’re here to help you make informed decisions as you put important things in place for you and your family.
Call us on 0808 1234 321 or email email@example.com to discuss any aspects of wealth planning, risk and investing during uncertain times.
* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire and the surrounding area, but not limited to the region.