COVID-19 Update – 23rd April 2020

During this difficult time fear and worry is understandable, particularly as the coronavirus (COVID-19) outbreak led to the biggest daily drop in the FTSE 100 since the financial crisis. Trying to second guess the impact of events such as the coronavirus or the recent stock market volatility – or even attempting to make a bet on them – rarely pays off. Instead, investors who focus on long-term horizons – at least five to ten years – have historically fared much better.

We all have different objectives in life and need different strategies to help achieve them. […]

There is a vast body of research to support the ‘stay put’ approach in emergency times across markets. This is why most professional long-term investors choose this path – leave short-term timing to people who have to do it

One of the hazards of the investment landscape is the occasional occurrence of ‘black swan’ events – unusual developments that aren’t predictable but can lead to unusually large short-term stock market dislocation.

Long-term investors need to not only be aware that such things do happen, but to know what to do when they materialise, if they are going to protect their capital and […]