The outbreak of the coronavirus has predictably had an impact on the economy already, as many health crises often do. Normally, this kind of event causes short-term shockwaves through the markets, but could there be any long-lasting consequences?
This does not constitute advice and advice should be sought in all instances before acting on it.
When the news of the virus initially broke, the markets responded accordingly and then appeared to reset themselves. While some thought that would be the end of it, each time a new affected region is announced, the markets take a tumble, so it’s reasonable to be concerned about the state of the market.
No need to panic
The markets are, and always will be, a roller coaster. What comes up will go down and vice versa.
Experienced investors know to ride out any speed bumps because the market will always recover. It’s tough not to get swept up in the panic, but a financial adviser will be able to help calm any nerves you might have about your finances during this turbulent time.
Stay the course
Trying to figure out the best time to buy and sell stocks and shares and make investment choices is already hard enough. Attempting to navigate the process during a known global health issue only makes it trickier.
Sometimes the professionals get it wrong as trading when current events are less than favourable is not ideal. Selling while losses are rampant will only lead to more losses and figuring out when to reenter the market is tough. It might be tempting to take advantage of low share prices and go on a buying spree, but you never know when prices will really hit rock-bottom. As usual, it’s always a gamble.
It’s best to keep your ISA and pension accounts exactly as they are; long-term, it’ll be worth it. And retail investors already know how to play the waiting game and are used to long-term investments, so they should carry on as usual.
As proof of this strategy, just look back to the global financial crisis of 2008. 10 years on and the economy has recovered, so it’s important to remember that the troubled times won’t last forever.
Safeguard your finances
Of course, you should always look at your personal circumstances and investments before making any decisions. If you’re concerned about how the market performance is impacted by the coronavirus outbreak, don’t hesitate to schedule time with our expert, Darren Scott-Guinness. He can help assuage your fears and review your financial plan to ensure you’re as protected as you can be.
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