The Coronavirus and your investments
I’m writing to update you on the Coronavirus and the impact it may have on your investments.
With more than 75,000 cases reported, and the death toll now exceeds 2,000, financial markets have started to get nervous.
Shares in Chinese stock markets have fallen, and global stock markets have started to wobble.
You may be wondering what impact the Coronavirus may have on your investments.
Whilst we do not have the proverbial crystal ball, we do have something else.
More than 50 years of history suggests that world epidemics have little impact on stock market returns.
(Source – Charles Schwab)
While there is always the chance that the next outbreak could have greater consequences, the global economy and markets have been relatively immune (excuse the pin) to the effects of past viral epidemics.
When it comes to your investments, you need to remember that the news is not your friend. It focuses attention on the short-term, at the expense of the long-term.
Pretty much every academic study shows that ‘timing the market’ doesn’t work. It’s almost impossible to get ‘in and out’ of the market at just the right time.
Warren Buffett has said, “The stock market is a device for transferring money from the impatient to the patient.”
My advice to you is similar: avoid making a reactive decision stay focused on the long-term.
In the meantime, I think the most helpful – and certainly most heartfelt – investment advice I can offer would be that you turn off the TV.
Initial Financial Consultation
I know that for many people, these are difficult times.
With so much uncertainty, it’s more important than ever to understand your financial situation.
To help, I’m offering an initial financial consultation for anyone who has been affected by the Coronavirus (COVID-19).
A free one-hour meeting, providing clarity on your current and future financial situation.
All the best,
James Mackay, Independent Financial Adviser in Bristol
P.s – here are 6 things you can do to survive lockdown during the Coronavirus.
Financial Advisor Bristol and Pension Advisor Clifton
About us: Frazer James Financial Advisers is a financial advisor, based in Clifton, Bristol. As an independent financial adviser, we’re able to provide independent and unbiased financial advice. We provide independent financial advice, pension advice, investment advice, inheritance tax planning and insurance advice.
If you would like to speak to a Financial Advisor, we offer an Initial Financial Consultation without cost or commitment. Meetings are held either at our offices, by video or by telephone. Our telephone number is 0117 990 2602.
Frazer James Financial Advisers is located at Square Works, 17 – 18 Berkeley Square, Bristol, BS8 1HB.
This article provides information about investing, but not personal advice. If you’re not sure which investments are right for you, please request advice.
Remember that investments can go up and down in value, you may get back less than you put in.