Hugh Lambert No Comments

Many individuals with investments and pensions will experience unforeseen events, such as wars or pandemics during the investment term, that will cause volatility and typically a drop off in valuation.

Initial reactions, typically sparked by media headlines, can be to cash out of the investment or move to something safer.

Before you do it, I recommend talking to an advisor and understanding the context of past performance.

As an example, historically speaking, conflict in the investment markets has been resilient, and that’s not to say that returns didn’t turn negative but if you stuck with it, you got recovery evaluation and a positive return thereafter.

It’s worth looking at your time frame, if you want to draw money in 20 years, there isn’t much point in making a move for short-term volatility.

If you’re going to draw money down sooner, you may need to review that, after valuations have recovered.

It’s worth looking at the level of volatility, if you felt it was too high, maybe you can go to something that’s low risk, albeit there might be a lower return with it.

If you have any queries or need to understand volatility in your investments feel free to get in touch to start a conversation💬

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