Stockmarket volatility, your money, 2016 and beyond.
2015 certainly saw volatility in the global equity markets. With falling commodity prices we have seen falls in the price of oil and utilities in the UK. Where is the best place to be invested now? Is now a good time to buy into the markets and where is it best to invest?
How have recent events affected your investments? Well this depends on where your money is invested. Many investors have seen the value of their investments and pensions plummet in the last 12 months. Had you merely invested in a FTSE 100 tracker fund then you could have seen a fall in value of some 17.7% from the peak.
How would this make you feel? There is no right or wrong way of investing, it basically boils down to what you are trying to achieve. We all have short, medium and long term objectives and where to invest is closely linked to how long you can invest for.
In the short term bank deposits offer security but little interest. Different asset classes perform differently to worldwide events. In our opinion most investors would be best served by minimising the usual risks of investing fully in equities. Spreading your money across different asset classes reduces the volatility and protects value.
Markets may be volatile in the short term but, over the longer term, they are more prone to rise than to fall. Short term fluctuations can be bearable and, as longer term investors, we sometimes have to put up with short term volatility in order to achieve our objectives.
If you would like to discuss how we can protect your money from market risk whilst still delivering above average returns, call Jonathan Rowley, Director at Hamnett Wealth Management, on 0114 235 3500.
The success of our business is closely aligned to your success. As Independent Financial Advisers we can help you make the most of your money. And don’t forget that the 5th April is fast approaching so make sure you have used your full ISA and Pension allowances.