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Market Update, COVID-19- 27/03/2020

Clearly, we have some very challenging weeks and months ahead of us; not only dealing with the market shock triggered by the COVID-19 pandemic and oil price war, but also the adaptation of new working practices while we try to isolate and practise social distancing. All with the important vision of trying to slow the spread of this deadly virus.

We have been speaking with a variety of fund managers, investment experts and industry professionals to gain a view of the current markets and an idea of what the future might hold.

The measures introduced by central banks and governments are extremely large, coordinated and designed to inject money into economies and to support business continuity. This has been well received by the markets, which have shown signs of recovery this week, although they have a long way to go. It is impossible to predict the future. Stock markets remain very volatile and there is the potential for further swings over the coming weeks and months.

Investment management teams remain fully operational and are managing their range of funds and portfolios as normal. They remain concentrated on managing the funds and portfolios in which our clients are invested with great care and diligence in these very challenging times.  All fund managers, analysts, dealers and operational personnel are able to work fully from home with access to all necessary systems, data and research. Appropriate methods of communication are in place for them to operate normally.

The information available to us tells us that the number of people infected by the virus will decline and the pandemic will end, but we don’t know when. We remain positive that a long-term investment strategy is the best way to ensure that you are still invested appropriately when the markets spike upwards, like they did at the start of this week.

As responsible guardians of your money, we still take the view that ‘timing the market’ is a high-risk gamble and that ‘time in the market’ is the best way to build long-term investment returns. With markets acting unpredictably and in a disorderly fashion, we favour a cautious approach at present and advise all clients to remain invested in their recommended portfolios.

As more information emerges, recommendations may change, so we are continuously monitoring the latest advice and guidance. We have a robust business continuity plan in place which has been reviewed and refined based on the latest information relating to Coronavirus.

Lastly, we would like to take this opportunity to send our wishes to you and your loved ones and we hope you are managing to deal with the changes we are all having to make. Stay safe, stay well and stay invested.

Please let us know if you would like a comfort call by calling us on 01455 886328 or emailing us at:

admin@northfieldwealth.co.uk

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