How should you react to the current health and financial global crisis?
You are doubtless being inundated with emails and communications from scores of businesses reassuring you of continued functionality and operation. I start by doing just that – Sycamore continues to remain fully operational, as we work remotely.
I am in constant contact with Quilter, Old Mutual and all platforms that we use. Old Mutual, particularly those responsible for the ongoing active management of Wealth Select, are speaking with me and updating me personally on a daily basis. They too have full contingency measures in place and all portfolios will continue to be fully and actively managed.
All risk levels have seen very significant depreciations in value since this crisis began. Having said that, we have seen real and considerable success in terms of downside protection and many of the clients we have spoken to are relieved to see that the falls are smaller than they may have feared in the context of the markets dropping more than 30% – and at such speed.
Our advice remains to sit tight and ride this out. You should be invested for the medium to the long-term and while the sight of these paper losses are painful and worrying it is, in my opinion, imperative to remain true to the key golden principles of investment that I have outlined and repeated on many previous occasions. While advice is and must be tailored to each and every individual – it almost never departs from “stay invested, do not de-risk and recognise the phenomenal value that current levels present”.
As I have said to many clients on the phone and in person – I do not possess a crystal ball and cannot say with any confidence that we have reached the bottom yet. What we do remain confident about is that the markets will recover and recover strongly. The timeframe is uncertain and therefore the biggest threat to the long-term performance of your investments remains missing out on the best days of the recovery were you to de-risk or move into cash.
These are unprecedented times and while your primary concern is and should be the health and well-being of yourselves and your families, please feel confident to focus on that in the knowledge that we and our industry partners continue to work very hard on our clients’ behalf to protect and grow their investments.
If you are not currently one of our clients, please feel free to get in touch on 020 3114 2112 or at email@example.com to discuss your investment needs and financial wellbeing now and going forward. In the meantime, I wish you continued good health, happiness and strength through this difficult time.