You don’t need us to tell you that investors have had a lot to deal with in the last few years. From a once-in-a-century pandemic to the Ukraine war, along with political upheaval in the US and the UK and soaring inflation across the globe, it’s been a tough period, to say the least.
In the face of such grim headlines and events, it’s perhaps no surprise that some might be feeling jittery. But we all know that markets go up as well as down, and that was particularly apparent last month.
For example, the FTSE-100 index of leading shares rose by four per cent in July to close the month at 7,423, while the pound held up against the dollar. Similarly, Germany’s DAX index went up by five per cent last month, ending at 13,484, and the CAC 40 Index in France gained nine per cent to end at 6,448. And early this month it has been reported in the Financial Times that there has been a slight easing in US inflation – possibly a sign that the pace of price rises has peaked there.
These positives have happened despite the ongoing doom and gloom, and despite justified concerns about just how high inflation could go in the coming months.
So what does this mean for investors?
Well, it’s a timely reminder that investors shouldn’t have a short-term outlook on their investments. Financial waters can be choppy, and they certainly are right now, but calm seas always lie ahead. If you step back and take a calm, logical look at the current state of affairs, you will see that it’s far from terminal and that at some point normal service will be resumed. Most investments are a long-term proposition, so impulsive action goes against the basic principles of investing in the markets.
If you are concerned about the impact of the tough economic climate on your investments, a better course of action would be to review your portfolio within the context of your financial planning aims. We are here to do that with you.
We are here now to help so please do not hesitate to contact us regarding your financial planning situation. Reviews and our Lifetime Financial Planning Service are all part of our added-value services for our clients.
And remember, always take relevant professional advice before taking, or refraining from taking, any action.
Barry Fleming & Partners has grown from a tax advisory background into a broader business that encompasses investment management. Both things matter for wealth management, retention and creation. That expertise makes the company strikingly different from others.
This capability allows Barry Fleming and Partners to use its strength in tax advice to take a 360-degree-view of a financial situation to give much broader, more comprehensive advice.
We bring together up to the minute tax, estate, investment and retirement planning advice to create individual, ‘joined up’ financial strategies. This allows our clients to understand and have confidence in how they can best control, retain, and build their assets and income to achieve their objectives with least risk.
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Barry Fleming & Partners are an independent financial advisor specialising in ISA’s, Pensions, Tax, Trusts, Estate Planning, Inheritance Tax Planning (IHT) and other Financial Planning areas. Please don’t hesitate to call on 01488 608 686 and ask to talk to one of our financial advisors. Alternatively use the contact form on our home page.