You have no doubt been hearing and reading the headlines about Coronavirus (COVID 19), and the recent volatility it has caused in the financial markets. We have definitely seen some dramatic activity over the last few days.
Although we don’t wish to downplay the seriousness of the situation, we are mindful not to get caught up in the media panic.
So, what do we know?
Your money is looked after by our highly experienced investment managers. We can expect the volatility to continue for a while yet and would not be surprised to see further downside in the market.
History has shown us however that investments go up, and they go down, but staying the course is typically the best action over the long term.
We also believe the market movements will present some significant opportunities in the coming months which will be exploited by the active fund managers we engage to manage your investment portfolios.
And, what is Cole Murray doing?
Rest assured we are staying well abreast of what is happening. In recent weeks we have met with many of the fund managers involved in managing our client’s portfolios.
Our client portfolios are well diversified. This means that a variety of asset classes are held in most portfolios. Not all assets move in the same direction at the same time. For example, most portfolios (including growth ones) have exposures to bonds, which have seen good returns over the last few months as equities have declined. Over time diversified portfolios should weather these current storms.
As a business we employ an active management approach with our client’s investment portfolios. The investment professionals within the fund managers we engage are all being proactive. They are presently all focused on closely monitoring the spread of the virus, the economic and financial impact, changes in related markets and government responses, to determine the best action to keep your investments on track in the long term. Our managers active approach to investing means they monitor local and global markets to identify what they believe are the best opportunities relative to the current market situation to optimise your investments. Each of the managers are invested in their own funds so the incentive is certainly there to ensure they do the best job possible.
So, what should you do?
Ask yourself – Have my goals and/or needs changed at all?
If not, you are probably best served to stick to the long-term plan and portfolio settings arranged with your adviser. Otherwise it is likely you are reacting to short term “noise” that markets and media can often generate.
If, however your situation has changed, for example you need to access funds within your investments, then please get in contact with your adviser to discuss the changes and what the best course of action is.
Remember, that volatility is all part of investing and doesn’t have to be a cause for concern. We believe, as an investor, it is important to focus on your long-term goals and not make any sudden changes to your portfolio. Moreover, periods of uncertainty can serve as good buying opportunities – should the right valuations and fundamentals arise. If you are making regular contributions to your investments this will also help. Just remember you are buying at lower prices today than you were a few weeks ago. Over the long term this will improve your outlook.
We are here to assist in any way we can, so please do not hesitate to reach out if you have any concerns or pressing questions.