Coronavirus: Finding opportunity in uncertain times

Posted 19.03.2020

‘Be fearful when others are greedy, and greedy only when others are fearful’ – Warren Buffett 

As Coronavirus spreads across the globe, such has been the panic amongst people that fights have been reported in the toilet roll aisles of supermarkets.

It would be understandable if investors were similarly nervous, but it is crucial to think of the long term outlook, bearing in mind that most portfolios are based around a minimum five-year strategy.

Significant market movements generate a range of emotions for investors, detailed in the cycle below, and it is essential that these are carefully managed to avoid knee-jerk reactions or spur of the moment decisions that could have a detrimental impact on future financial outcomes. Investment decisions should be directed by logic and information, rather than the heart.

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In times of market volatility, moments of opportunity can arise. It is when wealth managers and advisers earn their keep, providing reassurance and seeking out room for proactive movement or investment. With the markets dropping, there are those who will benefit when they recover over time, when advised appropriately.

It is important to take stock of your reasons for investment during periods of volatility and review your long-term plans. Did you invest for the short-term, or was it to support retirement, or plan for your children’s future?

Although social media and the availability of 24-hour news can leave investors feeling vulnerable and like they must ‘take action’, it is worth remembering that the current climate is a short-term fluctuation in a long-term plan.

If you’d like to discuss your options today, please contact a member of the team on 01332 497670.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested. Past performance is not indicative of future performance.