News
November Update 2008
06/11/2008
There is an old saying "a week is a long time in politics" and lately a week has seemed like an eternity for your finances, with a series of unprecedented events shaking the global economy in recent months. Never has personal finance received more media coverage and it has been practically impossible to avoid all the recent doom and gloom - so you can be forgiven for feeling slightly anxious.
The key to successful investing is to take the emotion out of the decisions you make. Whilst it is easy to get caught up in the hysteria surrounding the markets, it is important to act rationally and not panic. As of the end of October, the FTSE 100 is down a third since the start of the year so fund statements will make pretty grim reading. However, historically, some of the biggest stockmarket falls have been followed by some of the biggest rises. By coming out of the market now, you will, not only crystallise your losses but, also miss out on any bounce. How long will it be before the fear of more losses becomes the scramble to avoid being left behind once the recovery starts?
Nobody knows where and when the market will bottom out but there is no doubt that we are much nearer the bottom than the top - and many industry experts believe that there are signs that the recovery will soon begin. There is another saying that "it is darkest just before dawn" and we believe, for those feeling a little bit brave, now could be a good long-term time to buy.
Our advice to people with balanced, diversified portfolios and investments across various sectors, geographical areas and risk profiles would be to keep calm and remember that you invested for the long-term (five years minimum) so the performance of your investments this year should not unduly worry you.
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- Call a member of our Client
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