The content of our blogs is usually (we trust) of practical interest. However, just now, we would like to focus more on investment matters, given the current climate.
We have experienced a number of challenging events recently: heightened geopolitical risk, rising inflation and interest rates, the pandemic, and, as a result, increasingly more volatile markets.
At the same time, our rapidly changing world has benefitted from unprecedented technological change, healthcare advances, and a new focus on climate issues.
Indeed, change is ever-present, and it’s important to remember this is nothing new: For decades investors have had to negotiate various events, unexpected challenges, and issues.
However, history will continue to repeat itself and markets will continue to do what they’ve always done. They tend to deliver favourable returns over time, as shown by the history of the Dow Jones index.
What we’re seeing just now is typical market behaviour for what investors perceive as unusual times. We should bear in mind that not even two years ago, investors were panicking over global lockdowns, selling off shares unnecessarily and causing values to drop.
It’s important to stick to your financial plan, avoid any knee-jerk reactions to the news, and tune out the noise.
As we explained in our January blog, it’s also important to take appropriate risks and maintain a steady focus on your long-term goals.
These goals and objectives are addressed at every review meeting.
We appreciate that, yet again, we are in uncertain times and please contact us if there’s anything you would like to discuss.
With thanks for your continued support,
This email is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
The value of investments may go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future performance.