With all the rumours and speculation flying around regarding the EU referendum, it’s completely natural to be a little concerned and I understand. I want to reassure you and help you keep a sense of perspective about the future.
Here are a few timely reminders to consider:
- There’s never been a single event in history the major markets have failed to recover from. Ask yourself “is today really likely to be any different?”
- Stop watching the news, don’t read the headlines and ignore the noise. The politicians and the media have a lot to answer for and we can make a stand by not being consumed by fear. The media will love it, churning out ‘breaking news’ to stir up fear that in turn creates more news.
- History teaches us that permanent loss of your capital is only possible if you panic and sell in a downturn. If you sell, you create the very loss you’re trying to avoid.
- It is expected that the markets will drop in times of uncertainty and that is how the markets work. Let me remind you that we have seen this before and like every storm, it will pass.
- If you sell, you won’t know when to get back in. That’s why most investors don’t have a strategy, they have an impulse.You can never build financial security acting on an impulse.
- In uncertain times like these it’s important to act rationally. Usually, doing nothing will serve you extremely well. To illustrate the point, during the credit-crunch some markets fell 50% or more. Since then they’ve grown by almost 200%. Those who sold at the bottom missed out on the recovery.
- Please don’t expect to hear this message from the financial media. They’re not financial planners, but journalists who are only interested in giving you ‘noise’, never the truth.
As always, please get in touch if you are worried or you’d like to have a chat about this or any other financial matter.
Article taken from www.serenityfp.com
Tina Weeks is the founder of Serenity Financial Planning Ltd which is based in Barnet. She has over 19 years experience as an adviser and works predominantly with families that need investment, pension and estate planning advice. She also works with business owners and those who are going through divorce or other life transitions. All suitable new clients receive a free initial consultation.
Serenity Financial Planning Ltd
0208 440 4788