Managing your investments during uncertain times 

Published: February 2023

These are undoubtedly difficult times, with geopolitical instability, a pandemic, war in Europe, the return of inflation and a cost of living crisis creating uncertainty for the global economy and household finances alike.  Until some of these crises can be resolved and while central banks try to contain inflation, it is likely that markets will remain volatile.

But uncertainty and volatility are not always a bad thing.  In fact, volatility is normal, with share prices tending to overreact in the short term to bad news.  If you can accept this with your investments, you are less likely to react adversely, where the risk is you could lock in the losses, and it’s very difficult to know when to get back in.

Having a suitable mix of investments during these volatile periods can help minimise the risk.  By diversifying your portfolio across a range of asset types, sectors and regions, such as bonds, stocks and commodities (including precious metals), you can reduce the impact of market falls: if one area is weak, another may be strong, balancing your returns or at least softening the blow when times are bad.

Being disciplined is essential.  If you can tune out the short-term noise and focus on your long-term objectives, you will be rewarded for staying the course.

Market setbacks can also create opportunities.  So while you can’t always control how your investments perform, you can control how you react and prepare your portfolio.  At MM Wealth, we aim to work closely with you to understand your personal situation and investment needs, building long-term strategies and portfolios designed to meet your requirements.

Investing is a test of nerves, knowledge and experience.  Crises come and go, but tough times don’t last forever.  If you can be patient, let time and a diversified portfolio of quality investments do the hard work for you.

Our in-house investment team create diversified investment portfolios with varying risk profiles.  We work with you to identify your broader financial goals, integrating tax, investment and estate advice around your needs, providing a holistic approach to wealth management.

This means we can adapt your strategy and portfolio in response to market conditions, significant global events, as well as to changes in your personal situation.

If you are looking for advice on your investment strategy, please speak to our financial planning team on 01223 233331.

Disclaimer

Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.