Protecting your investments during market volatility

Brexit, combined with the potential for a Trump presidency, makes for troubling times for those who have money invested – so what can you do to manage your money in the current climate?

Prime Minister Theresa may has hinted that the UK could be heading for a so-called ‘hard Brexit’, which is likely to bring an exit from the single market and more economic uncertainty, potentially even another recession.

This, combined with the potential for a Trump presidency in America, makes for troubling times for those who have money invested – so what can you do to manage your money in the current climate?

Aberdein Considine’s independent financial advisers have been looking at this in depth and have the following suggestions.

1) Have a long-term strategy

It is important not to react out of panic and where possible to remain calm and take a long-term view.

Taking a step back from the short-term noise, thinking why you invested in the first place and making sure those reasons haven’t changed are essential before making any changes to you strategy.

During market falls, it can be tempting to sell some of your investments and keep the money somewhere safer.

But if you do, it means you are likely to be selling after the markets have already fallen – and, crucially, before they rise again. That means you lock in your loss.

2) Make sure you have a rounded approach

Successful investment requires the navigation of complex market forces, taking into account economic, political and behavioural factors, as well as company financials.

So it’s well-advised to take a rounded approach. The single most important thing you can do to mitigate risk is to diversify your portfolio.

3) Investment reasons

If you actively manage your own investments, you’ll probably want to make sure your choices still meets you needs and that your original reasons for investing are still valid.

You should also consider taking some professional financial advice. Some of the questions you might want to ask are: are you suitably diversified to help shelter your money from significant volatility? Is it still right for you in the current market environment?

4) Retirement timeframe

If you are still some years from retirement, your pension investments will have time to recover from any short-term losses.

Even if you are close to retirement or have already retired are relying on income from your investments, you shouldn’t panic – there are still things you can do to shelter yourself from market volatility.

If you’re approaching retirement, the most important thing to do is make sure you’re in investments that will get your money to where it needs to be by the time you retire – whether that’s purchasing an annuity, taking it all out as a lump sum, or keeping it invested and taking a flexible income.

If you’re already retired, there are ways an independent adviser can help you protect your money – not just from market volatility but throughout your retirement.

Independent financial advice

To make the right investment choices, you need to ask the right questions. And when it comes to answering those questions, Aberdein Consdine can help you find the best way forward.

If you would like to get a sound point of view about what may be right for your unique situation, please contact us. We’ll review and discuss your financial situation, help you set goals, suggest specific next steps, discuss potential solutions and provide ways to help you stay on track.

To speak to one of our advisers, call 0333 0044 333 or click here.

Note: Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance.