Its ok to be scared, being scared means you are about to do something really, really brave.
When we mention “brave” what do we mean?
The world is watching with concern the spread of the new coronavirus. The uncertainty is being felt around the globe, and it is unsettling on a human level as well as from the perspective of how markets respond.
You are probably reading/listening to the news (Negative Events World Service) and want to sell all of your investments and go to cash because that feels safest.
It is a fundamental principle that markets are designed to handle uncertainty, processing information in real-time as it becomes available. We see this happening when markets decline sharply, as they have recently, as well as when they rise. Such declines can be distressing to any investor, but they are also a demonstration that the market is functioning as we would expect.
We can’t tell you when things will turn or by how much, but our expectation is that bearing today’s risk will be compensated with positive expected returns. That’s been a lesson of past health crises, such as the Ebola and swine-flu outbreaks earlier this century, and of market disruptions, such as the global financial crisis of 2008–2009. Additionally, history has shown no reliable way to identify a market peak or bottom. These beliefs argue against making market moves based on fear or speculation, even as difficult and traumatic events transpire.
So, we are asking everyone to be brave and hold on. This is short term volatility and in the medium-term things will return to near normal. Coronavirus will disperse and markets will return. Click HERE for link to timing the markets
Trust in the markets to do what they do best and ride out the storm.
We need to take a long term view and try to not worry about the short term as you can see in the picture above.
Its normal to think the way you are thinking, its only human. I am here to ensure that you don’t do the wrong thing, at the wrong time and for the wrong reason.
Remember is ok to be scared but ensure you stay brave during that time.
If you have any concerns or questions, please do not hesitate to call us.
We have set up a booking system for anyone to call with concerns over their finances and the current market news. You don’t have to be a current client this open to all.
This is a free reassurance call
Please click the links to Gareth, Shane’s, James and Gavin’s diary to book a call.
This is what a lot of people do when the markets show volatility. The secret is to be brave and hold on.
Images courtesy of behaviour gap https://behaviorgap.com/