Financial Services Article
01 April, 2020
Financial Markets don't like bad news and the current Coronavirus outbreak is unfortunately no exception to that rule. You'll no doubt be aware of the impact this is having on the economy and Stock Markets. Downturns are not unusual but are very unsettling and upsetting.
In these situations, it can be natural to question whether you should take some action. But at times like this, often the best plan is to do nothing at all, particularly when you are investing for the longer term.
No-one can say for sure how long this downturn will last, or how bad it will get. But we can look at what has happened before. It's worth remembering that this is one of many "epidemics" that the world has experienced since the SARS outbreak in February 2003. Among others we also had Avian flu in 2006, the new strain of Swine Flu in 2009, the Ebola outbreaks of 2014 and 2018 and the Zika Virus in 2016. Global markets weathered all of these well, with markets recovering over the longer term.
The Stock Market has declined by 25% on more than 11 occasions since 1871 and recovered every time.
There are three steps that can help at times like these:
A dash for cash in 2001 and 2008 would still have left investors out of pocket today.
The FCA stated "If you sell when the market is down, you will suffer a loss in the value of your investment and might miss out on any increases in the value in the future if markets recover."
It is important to stay calm, and to not panic into making short-term decisions.
Forbes Solicitors Financial services Department remains open for business following Social Distancing guidelines by working from Home. Stay Safe, Stay invested and contact us if you need Financial Advice.
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