Hello,

 

Global stocks finished last week with their strongest performance in 9 months. For investors, the last number of weeks constituted somewhat of a bumpy ride as volatility increased and equities posted negative performance. Whilst the market has not regained its July highs, last week indicated a ‘sigh of relief’ for many investors. Some however, were not so fortunate, having made the switch to cash at market lows, crystalising losses.

 

The recent volatility serves as a reminder to the dangers of attempting to time the market – volatility is a feature of investing, and not an error. Research by JP Morgan shows that if an investor missed the 10 single best days in equity markets over the past 20 years then the end value of the hypothetical investor’s portfolio would be cut by more than half. Predicting market movements is more challenging than it appears, and the repercussions of misjudgment can be substantial. Remaining disciplined and sticking to the plan is the best advice in a volatile situation.

 

As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.