Financial markets have had a tough few days. Sadly, the reality is there is little that can be done now to any portfolio that has experienced negative volatility.
All investments should be regarded as medium to long term and, whilst uncomfortable, days like this do happen and will happen again. The good news is that, given time, they will recover.
The Chinese financial market has caused concern globally as fears increase that the Chinese economy is slowing faster than expected. The view from our investment specialists is consistent in that the global economic outlook remains supportive for equities (stocks and shares) and bonds over the medium to long term. Expect short term volatility to remain but the fundamentals remain positive in the USA, UK and Europe.
It is impossible to say when the markets will settle and they may still fall further, although there has been a rally in the markets so far today (25 August 2015). Investment should always be regarded as medium to long term and it is important that all investors retain sufficient liquidity to meet their immediate and short term needs so that access to investments at times such as these can be avoided where possible.
Our investment advice is centred around the use of portfolios aligned to the risks an investor is able, prepared and willing to accept. They will be very well diversified and, whilst all investment portfolios will have gone down to some degree in the current climate, dependent upon the risks being agreed and taken, they are unlikely to have gone down as much as some of the headline indices being quoted in the news, unless very high risk portfolios are being employed.
In times such as these it is a question of riding out the storm and do not panic.
This summary is not intended to be personal advice. If investors are unsure about the suitability of their investments in light of their personal circumstances they should seek independent financial advice, as we have seen investments will fall as well as rise in value, so you may get back less than you invested.
If you would like WBW Chartered Financial Planners to review your portfolio, your initial meeting is at our cost and without obligation, contact Michael Seagrove 01626 202404 to make an appointment.