Market Update – Coronavirus Fears

Market Update – Coronavirus Fears

Dear Clients,

Whilst you will all be aware of the ongoing concerns regarding the ‘Coronavirus’ and the potential for a Global Pandemic, may not be aware of the recent volatility within the markets over the last week. Whilst we had a great start to the year and the end of last year, with most investors making low-considerable gains depending on their investment approach, global stock markets have seen their sharpest fall since the 2008 recession this week.

The fall was prompted by the spread of the virus throughout Europe, having previously been thought of as an ‘Asia only’ problem. Investor confidence can be low in unprecedented times like this and it can have a significant effect on economies.

Depending on what you are invested in and what level of risk you have chosen to take, most investors have seen values fall in the last week. In terms of how to proceed going forward and what to expect for 2020, it is largely a case of assessing how comfortable you are with market volatility and your personal views on how and when the Coronavirus issue will be /may be resolved.

There is no real way of knowing what will happen given the nature of this market fall. Unlike normal market behaviour which is in most part based on a number of economic factors; this is an outside influence that is out of everybody’s hands ie it cannot be resolved by monetary policy or political influence.

As we are not authorised to give direct advice on how to invest your money (for example ‘ I recommend you go with a cautious approach’ or ‘I recommend that you move to cash’, we advise you to get in touch with us as soon as possible if you have any concerns.

If you are 50 or below with a retirement product or have long term savings with no requirement to access/take an income, you may wish to take a long term view that the markets will recover given that your capacity for loss is higher. However, if you are concerned or worried, or if you are close to retirement and have a retirement product that has no guarantees attached, please get in touch with us as soon as possible.

Giliker Flynn is not authorised to make investment decisions on your behalf. We must receive your authority first.

If you have any questions about investments, please contact us today.