TUESDAY, NOVEMBER 15TH, 2016

Fireworks in the financial markets – top tips for managing your investments

← BLOG - Fireworks in the financial markets – top tips for managing your investments

2016 is turning into a momentous year where investments are concerned. The markets were just looking like they were starting to calm down post Referendum, when the fireworks were set off by a High Court judgement on 3 November.

The High Court ruled that the Prime Minister must seek MPs’ approval to trigger Article 50 of the Lisbon Treaty, launching official Brexit talks.  Days later, however, the Supreme Court gave Theresa May permission to appeal the Article 50 ruling.

The triggering of Article 50 and our exit from the EU almost seems small fry in comparison to the news that our cousins from across The Pond greeted us with on the 9 November.

Donald Trump’s presidential victory plunged the global markets into turmoil overnight. And the shocks may not stop there as there is a referendum on the Italian constitution next month, and many more European elections in 2017 which could see Marine Le Pen of the far right nationalist party, Front National, be elected president in France.

Michael Heath, director of Milestone Financial Planning, said: “Political risk that has been absent from developed markets for most of the last two decades has returned with a vengeance, leaving many investors fearful of their financial future. There has never been a more important time to have an independent financial advisor by your side.”

If you’re an investor, or thinking of investing, what should you do with your money in this current global political climate? Here are Milestone Financial Planning’s top tips, from our team of expert financial advisers, to help you navigate your way through the minefield now and beyond 2016:

Revisit your investment goals – before making any investment decisions, it’s important to revisit your investment goals. This helps to remind you of how long you’re planning to invest for and the level of risk you’re willing and able to take. Investing should be considered for the long-term, so reviewing why and how long you’re investing for should help you put any short-term market volatility into perspective.

Understand your attitude to risk – when investing it’s up to you to decide how much risk you’re willing and able to take. Your view and attitude to risk however can change over time depending on your circumstances. When stock markets fall, investors tend to become more short-term in their views and their ability to accept a loss and take risk is greatly reduced. Some investors may become more cautious, often selling investments after markets have fallen.

Regular investing – by nature, markets are volatile. They move as confidence levels change and adjust to new information that becomes available. In the short-term it’s very difficult to predict where the top or bottom of a stock market will be, to the extent most professional investors don’t even try. Investing on a regular basis avoids trying to pick the bottom of the market, as investors benefit from drip feeding money into their investment, putting a little bit into the market each month. On days when the stock markets have fallen, investors will be able to buy more units or shares at a lower price. While on days when the market is higher, they’ll buy fewer shares. Drip feeding means that investors get an average price overall, not the lowest and not the highest over the investment period.

Make sure you speak to your independent financial before making any investment decisions.

If you have any questions about your portfolio’s performance, or would like independent financial advice on your financial plans and goals, get in touch with the Milestone Financial Planning team on 01246 903053.

Craig Croft-Rayner

Craig Croft-Rayner Craig is a Director and Financial Planner with 5 years of dedicated experience in the finance sector. Craig's commitment to excellence is evident as a proud member of the Chartered Insurance Institute and holds a diploma from the Personal Finance Society (PFS). He is currently undergoing training to achieve the esteemed Chartered Financial Planner status. Craig is passionate about empowering individuals to make informed financial decisions and achieve their financial goals.

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