HOPE FOR MARKETS?
Those on our client database will soon receive an update on conditions as we see them. It is the largest piece of work we have done on the crisis so far. If you would like one, please ask and we shall add your address to the postal list. We have found that there is a shortage of salient and lucid information for investors to be able to consider – it is easy saying ‘what sensible things everyone else’ is doing or appears to be doing or commenting on what has already happened, after the event – that is not very helpful to anyone.
So at time of writing, the Dow Jones’ index has bounced 29% from its lowest point (technically a Bull Market when over 20%), the FTSE100 by 19% and the FTSE250 (more UK-centric) by 20.5%. That’s encouraging, though is it too early to tell if this is a recovery or a ‘dead cat bounce’ in a Bear Market.
For anyone thinking of switching from one strategy to another during such heightened volatility, be very, very careful. You could fall between the stools. Your sales could be enacted on the worst possible day and then money arriving at your new destination in two weeks when the market has bounced a third. Yes, such extreme moves really can happen. Waiting for review till a time of stability is counselled and when too your own view of the future may have better foundations.
It is clearly a very nerve-racking time. Again, making emotional, knee jerk decisions is usually a very bad idea, however tempting to reduce any overwhelming feeling of despair. Instead, however difficult, try to focus on your long-term investment goals and why you invested at outset – no crisis lasts forever. Remember too how wonderfully resourceful and creative UK Plc can be and which becomes apparent in times of adversity. For example, the colossal Excel Centre in London was converted into a hospital for 4,000 patients in just two weeks, a Formula One racing team (Mercedes) joined forces with University College London and within 100 hours created a breathing aid, James Dyson designed and is now producing ventilators within ten days and the NHS asks for 250,000 volunteers and sees over a million respond. These are just some of the wonderful examples of how fantastically innovative we can be here and which provide clear reasons for optimism.
