Why it’s important to focus on your long-term financial plan in turbulent times

The Russian invasion of Ukraine last week has sparked more uncertainty and volatility in the financial markets

As we watch the news and read about the tragic events taking place in Ukraine, our foremost thoughts go out to the Ukrainian people who are bravely fighting to protect their homes and democratic rights.

However, as investors, our thoughts inevitably also turn closer to home to our investment portfolios.

It is natural for recent events to cause a degree of anxiety, with 24-hour news coverage updating us constantly on the fast-evolving situation.

It’s difficult to ignore it. Russia’s invasion has unsettled the global order and this has reverberated through economies and markets. Coming on top of inflation, which was already causing a fair degree of market volatility, current events have certainly not helped the situation.  

So how should you react? Do you need to be worried?

In times such as these, it is important to remember the long-term nature of your financial plan. Periods of volatility can be unsettling, but they are a part of investing. History has shown us that volatile moments tend to calm and lead to further gains. Conversely, making changes during volatile times can prove costly.

Investing is for the long-term and wars and economic crises happen much more frequently than we realise. Ultimately stockmarkets climb a ‘wall of worry’, so the message is keep calm and carry on being invested.

Volatility is part and parcel of the investing process, and the key for long-term investors is to hold a diversified portfolio appropriately positioned to achieve your long-term objectives.

However, if you currently have any specific concerns, or would like some financial advice on the current situation, please do not hesitate to contact us.

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