Don’t panic, a lesson from our recent history

Obviously our primary hope, is that the situation in The Ukraine can de-escalate as soon as possible. The people effected are in our thoughts at this time.

My job, however, is to talk to people a little closer to home about the impact on investment markets.

There’s no getting away from the facts, the majority of our investments have seen losses in recent weeks.

So, what do we do.?

My answer is always to stick to the rules

Time

Diversity

Avoid Greed

Avoid Fear

Take Advice.

The last time we had significant falls in investment values was during the start of the Pandemic.

On March 17th, we wrote to our clients with the following letter.

The current situation regarding Coronavirus and its impact on investments.

We felt it would be a good idea to write to you regarding the current situation on Coronavirus and its impact on investments.

Firstly, our main hope is that the impact of this virus causes the least damage possible and that people are able to continue with their lives.

We continue to follow advice from the Government regarding the office and what we should do. We have put in place measures, so should any of us need to self-isolate we would be able to work from home. We therefore expect to be able to keep the office open throughout.

Regarding investments, this has proven to be a very difficult time and (as ever) the stock market does not like uncertainty. Whilst these are unprecedented times, history tells us, that holding investments for the long term is normally the correct course of action. Short term panic can often lead to poor decisions and losses.

We always believe in long term investing and sticking to the principles of time and diversity whilst avoiding greed and fear.

As always, we will continue to act in your best interest.

6 days later, the world markets bottomed out, and by December that year the majority of our funds had recovered to above their previous highs.

Whether the falls will match those seen in February/ March 2020 or we will need to send another letter remains to be seen.

Nobody has a crystal ball

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