Our Views
Magus' perspective of money and financial management
focused on the real wealth issues that truly matter to people
Is Blog Page: Yes
'Wall Street opens down', 'FTSE 100 falls 1% at open', 'FTSE slides further', 'Global sell off continues in Europe', 'Few signs of cheer', 'The world is coming to an end' (I made that last one up) and so it goes on in a similar vein as I scroll through the BBC market news feed in relation to the recent market correction.

So where does all this actually take the market back to? Answer: only to the levels of May last year.

Maybe because we’ve seen in a sustained period of market highs and an extra ordinary run, we’ve forgotten that volatility is an inherent feature of the stock market. Couple this with a 60 year record period of low volatility for global equities and I think we can all agree we knew that the v word would rear its ugly head again.

If you read my recent article reading the tea leaves you will know that up until now events in 2018 had pretty much carried on where 2017 left off. The S&P 500 was up 5.6% in January, and currently this leaves the index down by less than 1% for the year to date.

The stock market and the economy are different things, and they don’t always move together and interestingly, the recent falls link back to strong economic news, especially coming out of the US. Global growth isn’t slowing – it’s predicated to be strong and healthy this year.

Thought for the day

Take Christmas – most of us know we’re paying a premium for everything during the festive season. If we were really organised we would hit the January sales hard and stock up on gifts for the following year. So if you can block out the noise and hold your nerve during such periods, this correction (or January sale) could actually present you with an opportunity.

So whatever the coming days, weeks and months hold, remember to keep your long term goals in focus and that:

  • These downturns are only temporary
  • If you're a Magus client, you hold a robust and globally diversified portfolio

And finally, remove your finger that is, according to the BBC, ‘hovering over the ‘sell’ button’.

This FTSE 100 view over a 5 year period perfectly makes my point. I don’t recall one single headline that mentions this, but then why let the good news get in the way of the sensationalist bad news?

FTSE100 5 Years

 

Past performance is not indicative of future performance.

The value of an investment may fall as well as rise. You may get back less than the original amount invested.

This article should be used for information purposes only and is subject to change without notice. None of the information contained in this article constitutes financial or other professional advice in any way. If you require additional information, you should contact Magus directly.

While Magus uses reasonable efforts to ensure that the information contained within articles is current and accurate at the date of publication, no warranties are made, either expressed or implied, as to reliability, accuracy or completeness of the information. Magus accepts no liability for any loss arising directly or indirectly from the use of or action taken in reliance on such information.

No warranty is given as to the freedom of this article from errors, defects, viruses, malicious programs or macros. Links from this article exist for information only and Magus accepts no responsibility or liability for the information contained on any such site. The existence of a link to another website does not imply or express endorsement of its provider, product or services by Magus. Please note that clicking on links to external websites will cause you to leave the Magus website.

There is no guarantee investment strategies will be successful and you could get back less than you invested.

Come and See Us

magus wealth planning coffee
Looking For
Financial Clarity?

 

Let's meet for coffee and a chat to see if we can shed some light on your financial world.

Drop us an email with your preferred date and time.

getintouchbutton