There is no doubt that the spread of the Covid-19 virus is a serious matter for the world to face. Worrying many people in these anxious times is also the economic impact that measures imposed by governments across the world will have on their finances.
So, what’s the lowdown on how coronavirus is affecting finances around the globe? We’ve put together this handy guide to give you a real, fact-based picture of how we see things. We are experts in our field, with years of experience behind us. Although none of us have seen anything of this nature before, we are well equipped to provide guidance through these troubling times.
It is certainly true that the stock market is having something of a crisis. Falls like this have not been seen since 2008 and could continue in the short-term, until the spread of the virus slows.
We strongly advise our clients that this is not the time to be selling ‘Growth Assets’ such as equities. Prices have fallen sharply, but this is only a ‘paper loss’ at this time. Hold tight. Things are expected to improve once the spread of the virus slows, particularly with the monetary support measures announced by Central Banks around the world.
Our approach at MFS
Here at Midland Financial Solutions, we always do our best to ensure that any portfolio has a diverse spread of assets to try and reduce the risks. For our clients taking a regular income from their pension funds that we manage for them, we have always advised they hold at least 12 to 18 months’ worth of income in cash, so that we’re not forced to sell assets that have fallen sharply in value, and there is more time for markets to improve before we do.
What we are doing to reassure customers
The Financial Conduct Authority (FCA) rules say that we must write to you if your investment portfolio has decreased in value by more than 10% since the last time we conducted our regular review of your investments. However, here at MFS we have also been calling affected clients so that we can answer questions and provide reassurance.
Some of our customers may be planning to make investments, but have yet to do so. Our advice is, hold off until you can talk to us so we can work together to find the right time to do so. There may well be some worthwhile investments out there to be made when prices have fallen so much so quickly, and we look forward to working together with you on this.
Stay in touch
Here at Midland Financial Solutions we are available as normal to answer your calls and emails. We are working from home, in line with Government guidance on remote working, but we are still very much around!
All it remains to say is to wish you and your loved ones the best of health.