Markets and Fluctuations
Prepare for the downs, the ups will take care of themselves.
Markets and Fluctuations
The markets have become unsettled once again and investment strategies are important to protecting your investments.
The emotions of traders with short-term investment strategies are running wild, fanned by information overload from the news providers who can turn any mole hill into a mountain.
The Chinese crisis
There is no doubt that China has some growing pains that can cause some real problems for the global economy. China’s economic growth is slowing. you might think what is all the fuss about? However, their economy has been led by construction which caused the demand for commodities such as oil, copper and steel to rise in the early part of this century. Now they need to rebalance their economy towards the consumer and service sectors. As always there will be winners and losers. The losers will the companies and countries providing commodities and the winners in time will be those with consumer goods industries.
So how do I consolidate my ISAs?
Stock market information is freely available; it is very transparent in our modern information led world. This causes people to think of equities as short-term when in reality they are a medium to long-term investment.
Corrections, a fall of 10% from the market high, have occurred once every 2.5 years since 1945. Equity investments have returned more than cash, fixed interest and property during the same period that these downturns occurred. Periods of equity market increases are never documented as vigorously by the press. Our Exeter based IFA team can make sure you are aware of market fluctuations for your investments.
When you plan to travel, you fill the car with fuel, check the tyres and prepare yourself for any possible delays to make sure you get there on time. The same is true of investing. Select the right investment profile, a 50:50 fixed interest/equity split means if the equity markets drop by 10% you only suffer a 5% drop. Diversify, make sure you have a variety, in 2008 the banks collapsed, Oil companies fell, continued to pay dividends and recovered. Dividends are like rent from a property, providing they are being paid a short-term drop in value does not matter. Buy quality investments [good track record, good products and loyal consumers] with the long-term in mind, hold and review regularly.
Please get in touch with our Exeter based IFA team for a free initial consultation if you are concerned about the current market effect on your investments.
Our investment proposition and shows how IMI fared through the 2008 Credit Crunch. The share price fell, dividend continued to increase and the shares recovered. To get in and out of the market you need to know two things; when you are at the top and when you have reached the bottom, both are easier to identify with hindsight and require a hearty dose of conviction at both ends. Therefore, if you have the right investments a case of steady as she goes may be more suitable.
Are you looking for an IFA in Exeter?
Speak to our Exeter advisors
Pick up the phone and speak with one of our Exeter based independent financial advisors today who will be happy to answer your questions. Alternatively, leave our IFA team a message and we will get back to you as soon as possible.
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