With the markets changing so much over the last few days, we wanted to provide you with an update on how current affairs have impacted your investments.
What’s happening to my investments right now?
After an already-turbulent year, financial markets are currently reacting to the latest political and financial news, which we know will be concerning for many of our clients.
We have already experienced plenty of volatility this year, due to factors such as the Russian-Ukraine conflict, continued uncertainty around interest rates, and rising inflation, and we want to be completely transparent about what is impacting your Plan’s performance.
The latest headlines about the value of Sterling falling off the back of the recent mini-budget announcement could cause concern for even the most seasoned of investors.
Remember: market dips are to be expected
We know it can be hard to keep calm and do nothing during extended periods of volatility. But while it may be unsettling, it’s perfectly normal for markets to fluctuate and go up and down over time.
Focusing on the long-term and avoiding emotional decisions could help ride out these bumps. Plus, continuing to invest little and often can mean that you pick up investments at a bargain price, and their value may well increase if the markets bounce back.
It’s only by selling your investments when markets are down that you make any current losses a reality, although markets are unpredictable and there is always the risk with investing that you could end up with less money than you put in. Therefore, we advise that at present you should remain invested and do nothing.
Please rest assured that we are closely monitoring the ongoing situation and will continue to act in your long-term interest and keep you updated.