At times like this, it is worth reminding ourselves that the short-term uncertainty in stock markets is what actually delivers investors’ returns that are above bank deposits.

This allows us to grow the purchasing power of the pound in our pockets over time. In the case of equities, this level of uncertainty can be high as the stock market adjusts its view of long-term company earnings to establish realistic share prices. If there was no uncertainty, then there would be no benefit in investing in equities.

In contrast to the recent sensationalist headlines, such as the BBC’s ‘Coronavirus fears wipe £200 billion off UK firm’s value’ the never-published headline of ‘Over the past 10 years global equity markets have turned £100 into £266, so giving a bit back is perhaps to be expected’ provides some comfort to those already invested.

To those who aren’t invested or have money to invest, stocks are cheaper than they were at the start of the year. As we’ve said before, good news doesn’t sell as well as bad news.

You may be asking yourself whether this health-driven market event is different to those that have gone before. It is, but only because every market fall is driven by a different combination of events that impact on future corporate earnings. What should remain the same is your response to it: avoid panic, avoid unnecessary emotionally driven investment activity, believe in your portfolio and the power of markets and capitalism to recover in time.

Here are some tips to help keep things in perspective:

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