At Magus Wealth we have a proven, robust and evidence-based investment strategy, shaped around our 10 central investment pillars.
Investment pillar number 8 ‘Manage your emotions’ is particularly relevant today as we know it can be very hard to feel calm and confident as the markets react and understandably investors feel nervous, which could lead to making bad investment decisions.
We realise investing in an ISA or adding funds to your existing ISA might be the furthest thing from your mind right now, you might even be thinking of cashing in some of your ISA investments. Our advice is, unless you need the funds, don’t. Because now is the very time to avoid reactive investing – allow the markets time to recover and stay disciplined.
Your investments are shaped around your goals and as ever, we continue to follow the other nine investment pillars – we strongly advise you look beyond the news headlines and focus on the things you can control; your investment plan is built around your needs and risk tolerance, its diversified, costs are controlled and you have a plan that is built to last and help you navigate the stormiest of weather.
Selling your investments after sharp and indiscriminate market falls is the worst thing to do. It’s the same when it comes to adding funds to your ISA as this detracts you from your investing goals and it would also mean not investing even though share prices are lower.
We don’t know what the next days, weeks and months look like, but our advice is to invest in your ISA – for the long term. Stock markets have their ups and downs, but they also reward investors over the long term.
We can’t predict what’s going to happen to the market – it’s a worrying time as share prices tumble, but unlike the global financial crisis of 2007-08, the underlying global financial system is strong.
So, our message is continue investing in your ISA and continue investing in the same things as before. Staying invested has proved to be the best plan in past downturns and is likely to be the best plan now, as the opposite strategy usually manages to miss most of the recovery, when it comes.
Sit tight, trust the spread and the defensive element of your portfolio and please call your Financial Planner any time for a further discussion.
If you’re not already a Magus Wealth client, and you’d like to find out more, get in touch.
Investment risk information:
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Past performance is not a reliable indicator of future results.
The eligibility to invest in either ISA or Junior ISA depends on individual circumstances and all tax rules may change in future.
Other important information:
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