Coronavirus Update

Coronavirus (COVID-19) has dominated headlines of late, and whilst the primary cost is of course a human one - the coronavirus itself should not derail your investment or retirement strategies and as ever your goals and objectives remain long term ones.

With market volatility built into any potential modelling and planning, the following article provides some context to the recent volatility in the investment markets and 3 reasons why this virus should not change your long-term plans.

Take a long-term view

Advances in medical science mean trials of a coronavirus vaccine are already underway. Governments are likely to step in to offset weak consumer activity making the slowdown temporary. As such, the general view is that full year global growth for 2020 will be positive, albeit with some regional variations.

Risk management has intensified

Our Investment committee continues to monitor and identify investment solutions that deliver attractive risk adjusted returns in line with our clients’ expectations for each Risk Grade. Our risk framework and fund due diligence are designed to support long-term investing and withstand unpredictable shocks like coronavirus.

Recovery brings opportunity

Assuming that we reach the global peak of new cases of the coronavirus in the first half of 2020, full year growth will benefit from the subsequent recovery. With professional investment management on your side through our investment committees approved solutions, the lower valuations that will follow current market weakness present a potential opportunity, not a threat.

It's worthwhile bearing in mind that other factors also drive markets. Monetary, fiscal and other policy responses to the crisis which may emerge could outweigh decelerating growth, and help to support markets.

Whilst in the short-term the outlook is volatile, it is important to maintain a long-term perspective when investing. As a Kellands Hale client, you are of course invested in a well-diversified portfolio, which serves to help manage risk through volatile times such as these.

As ever, your annual review will provide an ideal opportunity to discuss this issue and others, but in the meantime our advice and recommendations are linked to long-term goals and objectives, and any plan put in place always factors in market volatility and corrections in the short-term.

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