The financial equity markets have obviously been seriously affected in recent days and weeks by the social and economic upheaval caused by the Coronavirus.
We know that the markets can be volatile and irrational at times and this is one reason why the Russell Gibson investment approach has always been based on building long term strategic investment models, which help lower risk and volatility for your selected investment strategy. These investment models also form part of the overall strategy to help you fulfil your long-term financial goals and objectives.
To assist our clients with maintaining perspective during these uncertain times, we feel it is important to remember that a globally diversified portfolio, which includes not only equity backed assets, should help with reducing the overall volatility of your portfolio and protecting your capital.
In general terms and to illustrate how this affects you in the real world, as of close of business on Friday, your portfolio would have been worth broadly the same as it was, if you were invested at the beginning of 2019.
Whilst there is no doubt that these are worrying times, the financial planners at Russell Gibson advise against any spontaneous reflex actions, like cashing in equity backed investments, while the market is low. Whilst it might seem counter-intuitive to remain invested – it is in fact quite the opposite. If you can afford to maintain your lifestyle without taking drastic measures like pulling out of the market, we would always advise you to take a more medium to long term market view, in line with your long term goals and this inevitably involves riding out the short-term maelstrom.
If you do have any specific queries at this time or simply want to talk through your concerns with your financial planner, please do not hesitate to get in touch with us. Together, we can get through this difficult time.
In the meantime, we hope all our clients continue to focus on the health and wellbeing of themselves and of those individuals close to them and we wish you all the best in the coming weeks and months.
We are here if you need us.
The Russell Gibson team