Billions wiped ON to the markets….
No that’s not a typo. And no we don’t need to go to a well-known high street opticians!
But the fact is that Monday 2 March saw the markets enjoy one of their largest single day increases. Yet it hardly made the news sites at all.
We all know that “bad news sells”. Indeed if you had focussed your attention solely on the press you would be correct for assuming that the markets have only been going in one direction – down. After all, there have been well publicised falls in stockmarkets across the world due to fears over the so-called Coronavirus outbreak. And it is probably true to say that markets are currently back to where they were a few months ago, having lost the gains made over the last three months.
The single day increase on 2 March only serves to highlight the volatility in the markets.
This volatility is caused by uncertainty – and with the current unknowns around Coronavirus it is no surprise that this week has seen markets see-saw.
We know that this can be disconcerting, but what’s interesting is that we are yet to receive a single call from a client concerned about the markets. Perhaps this comes down to two factors:
- Our clients understand how their money is invested in a range of assets, not all of which will have been subjected to the same market movements that news articles would have you believe.
- Our clients understand their own requirements for the invested funds. Markets will move up and down – it’s what they do – but knowing that your income & short-term capital needs are already met and that longer term your invested capital will recover, is a comforting place to be.
If you have concerns with regards to your own investments or do not understand the impact of the current situation on your holdings, feel free to give us at Logic Financial Services Ltd a call.