Managing your investments in times of uncertainty

Managing your investments in times of uncertainty

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Article highlights

  • The world and the markets have gone through many crises before and have always found their way back to normalcy
  • Investments are long-term and avoid making emotional, short-term investment decisions
  • Stay informed about your investments and relevant developments that may affect them

With most of the world in some form of isolation and daily news feeds churning out one COVID-19 story after another, it’s completely understandable to feel panic.

However, we encourage our investors to fight the urge to make emotionally (fear)-driven decisions. Stay the course with your investments, focus on the long-term and don’t panic-sell, based on the headlines in the daily news.

Don’t sell in to the panic

The fact is that no one knows yet how this is going to play out. There are new developments every hour or two and everyone is trying to guess what will happen next. This has resulted in extremely volatile markets which is having a real effect on investment returns across most asset classes and around the world. Understandably, this has caused many investors to panic.

It’s important to remember that the world and the markets have gone through many crises before and have always found their way back to normalcy. We believe they will withstand this one.
However, we fully acknowledge that this is an extremely worrying time for investors and that remaining calm is easier said than done. With so much real-time information coming in, it’s easy to get caught up in short-term sentiment and subsequently view daily developments as permanent outcomes.

There is a sense of needing to take immediate action but staying focussed on your long-term investment goals is the best action you can take right now. An investment portfolio that is diversified across asset classes, geographies, and investment styles and aligned to your investment goals, time horizon and risk tolerance, continues to be the best long-term investment approach.

Maintaining a sense of balance

When it comes to making rational, long-term investment decisions, maintaining a sense of balance is crucial.

While the Covid-19 pandemic continues to impact our professional and personal lives in ways we never expected, we are also seeing governments and citizens come together in unprecedented ways - taking sweeping, proactive action to support economies, stock markets and the well-being of all people. With almost everyone acknowledging that “we are in this together”, the world is experiencing a new sense of unity and community, despite isolation.

What can you do?

- Remember that investments are long-term and avoid making emotional, short-term investment decisions.
- Refrain from checking your investments each day and avoid watching the news on repeat. This can lead to an exaggerated sense of negativity and make it harder to remain rational.
- If you have a financial planner, keep regular contact with them to help separate the actionable news from sensationalist news.
- Stay in touch with friends and family and come up with creative ways to enjoy self-isolation together – technology is an excellent tool for this.
- Keep active, positive and healthy

Business as usual at Nedgroup Investments

A reminder that while we have implemented the necessary safety arrangements for our staff, it is business as usual at Nedgroup Investments. We are working closely with our Best of Breed™ fund managers to keep investors updated and informed about their investments and relevant developments during this time.

Our digital platforms remain fully operational. Check our website for regular updates and information and use your online login to access your investment information or manage your account.