The financial headlines can be daunting but it is important to remember that as with all significant global events, the markets are reacting to new information and pricing accordingly. The sharp falls you will be hearing in the media are exactly how we would expect the markets to perform.
Even in these unusual times, the basic principles of long-term investing remain unchanged; short-term falls do not necessarily impact later life goals. Markets will always rise and fall – these falls allow investors to capture the growth of the economy when things pick up and are the very thing that deliver strong returns on your portfolio in the long-run. Historic data shows us that investors who have stayed the course during previous volatile market activity have gone on to see their investments recover and grow.
If you have a well-diversified portfolio which is designed to weather such storms, you should feel assured that your investments will behave as expected.
If you would welcome the chance to talk with an adviser, please contact one of the team on 020 7252 5765.