As a result of the COVID-19 outbreak, global stock markets are suffering a major period of volatility. We all know that markets do not respond well to periods of uncertainty and that volatility goes hand in hand with stock market investment. Although undulations in the markets can be concerning, experience has taught us to expect the unexpected.

Long-term focus

It’s wise to stick with your plan in order to navigate market volatility, ensure your holdings are diversified and accept volatility. Investors with diversified portfolios, who stay in the market, have historically and consistently experienced steady gains over time. Even though it can be difficult to disregard daily market movements, it is vital to focus on the long term and remember that volatility also presents opportunities.

A clear head and a well-defined plan

Investment requires a disciplined approach and a degree of holding your nerve if markets fall. As Rudyard Kipling wrote, it’s important to “keep your head when all about you are losing theirs.” The worst investment strategy you can adopt is to jump in and out of the stock market, panic when prices fall and sell investments at the bottom of the market. A well-defined investment plan, tailored to your objectives, in line with your attitude to risk, that takes into account your financial situation, can help you weather short-term market fluctuations. Market volatility is a timely reminder to keep your investments under regular review; rest assured we’ve got your back.

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Tax and Estate planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

Will writing is not regulated by the Financial Conduct Authority. Quilter Financial Planning Ltd are not responsible for any will writing advice.