Turbulent markets and the coronavirus
In these difficult times staying fit and healthy and looking after one another should be our utmost priority. As a responsible employer we have a duty to look after our employees, their families and of course our clients. That is why we have made some sensible business decisions and will be asking all our staff to work remotely during the current health crisis.
We also can’t ignore the dramatic effect this pandemic is having on financial markets, the like of which we have never seen before. Experienced investors will know that during the life of any portfolio there will be good years, bad years and indifferent years and over time these events do average out. Governments throughout the world have acted decisively to try and stem the economic impact and time will tell how effective these decisions have been. However, we recognise at this time the need for advice and reassurance has never been greater. Whilst face to face meetings may be difficult we are here at the end of the phone or over Skype to have conversations and provide help and guidance in these difficult times.
For some, their circumstances may have changed dramatically and there are steps we can put in place to help. Generating income, providing liquidity or altering strategies in light of changed circumstances is something that we as financial advisers have been helping our clients to do for many years. For others, their financial position may remain unchanged and whilst the world is changing around them maintaining the status quo could well be the correct course of action. Everyone is in a different situation and there is no one silver bullet solution.
The investment profile that we agreed and put in place for you has been tried and tested both virtually (via modelling) as well as in practice for twenty years or more, and it is therefore suitable to maintain this position during this difficult time. Investment values will have been affected, but hopefully only over the short term. There are other diversification strategies that we have put in place for you (such as emergency cash reserves and other asset classes diversifying from equities) are an important part of our financial plan for you, especially in times such as this.
Equally it is worth bearing in mind that where there is crisis, there is opportunity. Warren Buffet, one of the world’s most successful investors said, ‘be fearful when others are greedy and be greedy only when others are fearful’. Our financial advisers continue to proactively watch and review all funds under our administration and whilst there is currently volatility in financial markets, we are hopeful that the fiscal stimulus provided by the government, coupled with improving visibility on the outlook for revenues and profits will enable equity markets to find an appropriate clearing level which can then form a platform for improvement.