Coronavirus – panic pandemic

Published in

Coronavirus – panic pandemic

In many ways, ‘risk’ is the thing you don’t see coming.

Well, nobody saw the coronavirus pandemic coming a year ago.

Stock markets (aka the biggest companies in the world) have felt the full force of the prevailing uncertainty that Coronavirus has bought.

Fundamentally, this is caused by 2 things:

1. Companies future earnings expectations have reduced, and;

2. Fear

As the story changes, so do investment markets.

Perspective

At times such as this, it’s important to have perspective and not get too sucked into the hysteria.

While it’s very likely the next few months will be challenging and worrisome, when it comes to your money, it is worth remembering:

Every past market crash looks like an opportunity, but every future market crash looks like a risk” – Morgan Housel.

With history as our guide, we have had several deep and unpredictable declines. The only consistent theme over time is that these declines have been temporary and that the advance of the market has been permanent.

As the worlds most well-known investor, Warren Buffett, says:

The stock market is a device for transferring money from the impatient to the patient.

Your advisers

For the team at Frazer James, it’s business as usual.

All of our team already have the ability to work remotely and as we have clients across the South West and London we are used to hosting video & telephone meetings.

As ever, we’re here for you whenever you need us, so please don’t hesitate to pick up the phone.

You can book in for a Quick Financial Call using the calendar below.

All the best,

James Mackay, Independent Financial Adviser in Bristol

Contact us

Want to know more? Drop us a line.