Dr Mark Martin writes: Since the EU referendum on 23 June, it has been impossible to write a blog on ‘Brexit’ without the political news changing within hours. Politicians have come and gone, some have even come back after leaving. We have a new prime minister in place but the pound is still volatile and the UK is looking anything but united.
With the current level of speculation and ‘expert’ analysis ever present in media reporting, we do not intend to offer any further viewpoint on the current political status. Rather, we wish to present some factual commentary which might serve to allay any concerns you hold in regards to your investments at this challenging time.
Rather than panic with each new doom and gloom story in the press, now is a key time to review your own financial status and to check that your finances are in the best possible position to weather the current political storm.
At Medical Family Finance, our clients know that their investment plan has been carefully created to withstand challenging market conditions. The markets may experience continued volatility in the coming weeks and months but this is the very nature of equity investing. Investing is a long-term consideration and the current financial ‘noise’ is just another part of the ebb and flow of market activity.
Do you have complete peace of mind that your own investment plan is equally secure?
Are your investments held in a globally diversified portfolio? Do they have suitable exposure to other equity markets to mitigate any UK-specific market fall?
It is worth remembering that the UK economy represents less than 5 per cent of global GDP, and its equity market is around 6 per cent of global market capitalisation. Many of the companies listed on the stock market have significant overseas operations to bolster their performance. A well-diversified portfolio will seek to make the most of these opportunities.
Please click here to view our recently released “Guide to Investing” which covers the Medical Family Finance investment philosophy in more detail and gives a summary of the evidence base we have behind this.
The matters which are now less certain for us all are domestic. How will our personal finances be affected by new levels of tax, by house price fluctuations or changes to inflation and interest rates? It is clear that those in positions of power are no more assured of the outcome than the rest of us so we must all play a waiting game.
The best way to protect your own security within the uncertainty of the present economy is to ensure you are on top of every financial matter that you can control.