Coronavirus Impact – Viewpoints of Investment Manager
You are not alone. Coronavirus is causing many investors extreme worry and uncertainty. The best thing to do is to seek expat financial advice in the UK regarding your pension and investments, so you can determine the best course of action. It also pays to know the viewpoints of investment managers particularly on longer-term investments like pension funds:
- Many are concerned that the Coronavirus may negatively impact the global economy, as they observe the significant decline of stock markets around the world. However, the falls should not affect the value of investments or pensions that are not heavily linked to those markets.
- Keeping your investments properly diversified around the world may offer protection against severe market crashes in a particular region. Investors may be affected by restrictions on travel and the supply chain due to the resulting falling prices, but that should not necessarily result in a long-term or medium-term slowdown. The Coronavirus may negatively affect demand for months, too, but the demand should return when the outbreak can be controlled.
- Having a good mix of assets across different geographies and sectors should prevent market volatility from harming your whole portfolio.
- The Bank of England is offering an emergency package of measures to counter the problems associated with cash flow in many households and businesses in the UK, while supporting the demand in our economy.
- A moderate pro-risk investment strategy may offer some comfort as favourable valuations for risky classes of assets, but it is still advisable to build resilience in your portfolio to protect against downward scenarios.
- You are likely to hear expat financial advice in the UK telling you to buy while other investors are panicking.
- It is risky to make long-term decisions based on short-term volatility. You may be tempted to withdraw your earnings, but this could put you at risk of missing out on the chance to earn more when the value increases again, and this could result in long-term losses.