As you will no doubt be aware, markets have continued to be volatile. The price of oil moved negative on Monday 20th April for the first time in history. The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel. With Market analysts unable to agree on what shape the recovery will take or that we may still face a further downturn, most remain relatively cautious, but the underlying message is not to panic.
Naturally with such dramatic drops in market values (high volatility) investors get twitchy, which can make the situation worse and even less predictable.
So here are six principles to follow to ease the ride:
- Have a plan and stick to it – keep your focus on your long term aims, don’t let the current market conditions dictate what you do.
- Don’t keep all your eggs in one basket – this may be a cliché but it is so true, diversification is key, spreading your risk across asset types, sectors etc.
- Its time in the market that counts, not timing the markets- the sooner you start investing and the longer you invest the more likely you are to have the potential for healthy returns regardless of short-term downturns.
- No Risk, No Reward- leaving your money in cash isn’t an option if you want at least the potential to outperform inflation.
- Take advantage of advice – the role of a financial adviser is to go through the various investments options with you and to tailor your investment to meet your needs and attitude to risk and to manage your investments and expectations.
- Don’t get greedy and fall for a scam, if something sounds too good to be true it usually is.
In these testing times getting advice from a financial advice company that has weathered more than one or two financial downturns is essential for your financial wellbeing and peace of mind. Blacktower Financial Management has been established for over 32 years and has worked with its clients through the good and the bad times, offering sound financial advice.
Blacktower will be by your side both now and in the future, we are here to help you weather the potential storms ahead, to arrange a professional and impartial consultation please contact me by phone 06 38 86 99 70 or email: [email protected] or visit www.blacktowerfm.com
This article is based on the opinion of the financial adviser and author, and does not reflect the views of Blacktower. The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
Blacktower Financial Management Ltd is authorised and regulated in the UK by the Financial Conduct Authority. Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) through whom we have a registered branch and passport for financial services in France. License number 00805B.