At times like this, the temptation to ‘run for cover’ can be overwhelming. It’s a natural human reaction to want to take action to move away from an uncomfortable situation and investing your money isn’t any different.
It often takes more effort to do nothing than to move to safety, however as our advisers will have already discussed with many of you, it is vital to hold your nerve and let the markets do what they do. They return. The panic will return to calm. People will return to restaurants and cafes. Business will trade again and the value of your pensions, ISA’s and investments will come back to fair value.
We have attached an example of how market timing can affect the value of your funds, written by Close Brothers Asset Management. Our thanks to them for this content.