Market Concerns – February 2022
As I am sure you are aware, tensions have increased between Russia and Ukraine in the last 24 hours following weeks of political manoeuvring, which has seen and global stock markets come under some pressure. Clearly this has been exacerbated following the reported skirmishes and bombings in the region overnight (23/24th February).
Whilst we cannot predict what is going to happen in Ukraine or for that matter stock markets, we can review previous similar events and also ensure that our portfolios are appropriately diversified.
Recent history has shown us that markets are recovering a lot quicker than was previously the case and this reinforces the opinion, that it is important not to panic in these times and to hold your nerve. Clearly a panic sale of investments will crystallise the loss whereas, when we look back over the last couple of decades; we have experienced extremely turbulent times, and yet our portfolios have continued to increase in value. This takes into consideration the market falls we have experienced in early March 2020 due to the Covid 19 pandemic, mid 2007 due to the Global Financial Crisis and the 2000 Dot Com Bubble just to name a few, and within a matter of months portfolios had recovered.
In fact, we would go so far as saying that the volatility gives increased opportunities for purchasing quality assets at reduced prices and as such further potential for increased long term growth. Whilst we understand many of you will be concerned about what is happening both economically and socially, it is important not to panic and make irrational decisions. We have built well-balanced portfolios that match our clients’ needs and attitude to risk and capacity for loss which are diversified across asset classes, regions and sectors.
We will continue to monitor the situation and update you all accordingly, however if you have any queries please do not hesitate to contact us.
For clarification of any points discussed above and any future independent advice regarding your own financial planning, please do contact us on 01626 833225 or email [email protected]
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The views and opinions contained herein are those of Loughtons Independent Financial Advisers and may not necessarily represent views expressed or reflected in other economic communications, strategies or funds.
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