Market Volatility – October 2018
Depending on how you are invested with your pension and/or investments, you may have noticed the volatility in the markets over the last few days. We saw a significant drop in some asset values in the week ending 12th October.
Heightened volatility has been experienced since February this year. It is expected now but the consensus view from fund managers is still for growth in 2018 and 2019 but with continued volatility. We could experience shocks to the market.
I recently attended an Invesco Perpetual Investment Intelligence seminar and the main risk focused on was Geo Politics. Whilst we hear a lot of media noise about Brexit, Trump is likely to be the bigger political risk.
Trump may just be posturing to the home crowd for the Mid Terms and hopefully normal service (normal Trump!) will be resumed shortly.
For most investors, we should ignore the short-term volatility and focus on the long term. The majority of investments used are ‘active’ funds with fund managers taking account of the changing market outlook. In addition, we also use investment propositions that have strategic and tactical management that invest appropriately, within a given risk profile, for the markets.
A key message for investors is to keep calm and carry on!