Gee and Watson

We have enjoyed positive returns for some time, despite tricky conditions, and it is easy to forget that investments can also go down.

Indeed, this year has been very difficult, with many issues facing the global economy, resulting in significant short-term falls to areas of the Equity and Bond markets. It is therefore important to stress that we are comfortable with the positioning of our portfolios, and any changes recommended in your review meetings will only be minor. Indeed, at times like this the most important thing is to hold your nerve, and to sit tight.

The 2 documents from Fidelity (see below) demonstrate perfectly how the passing of time has consistently reduced short-term volatility, and that it is the time you spend in the markets, rather than the timing of them, which is most important.

If you are paying monthly contributions then you may want to consider increasing these, subject of course to affordability, as you will purchase more units at times when prices are lower. In contrast, if you are withdrawing an income, and you can afford to reduce it, then you may wish to consider doing so to ensure that you do not encash too many units at the lower prices. Your adviser will be able to discuss this further with you. 

Fidelity - When Doing Nothing Is Best 
Fidelity - Putting Time On Your Side 
 
 

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