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Where there’s muck, there’s brass!Wednesday 4th March 2020
A week used to be a long time in politics – however, that adage might have to be updated to ‘overnight’ after some surprising comings and goings at Westminster. Add to that the headlines about Coronavirus and you have a pretty volatile mix for UK and global markets.
Governments around the world are having to react almost daily to the developing Coronavirus story, and in the UK we have our domestic issues to deal with as well. Whether that’s the re-structuring at Westminster, ongoing negotiations with the EU or the shocking flooding around the country, it all creates uncertainty and markets always react dramatically to uncertainty.
But the pattern is always the same, regardless of the reason: panic selling and then a bounce. Unfortunately, we never know when the market has hit the bottom and consequently when the bounce will be. But as you watch the markets falling, remember that these prices will represent great value at some point in the future. It’s also worth noting that whilst the capital values may have been knocked there are still good income streams coming in. If you have enough emergency cash set aside ie the equivalent of six to twelve months’ expenditure, including cash for any major purchases in the next three years, it’s worth taking advantage of these lower prices.
In a nutshell: ‘where there’s muck, there’s brass’, meaning there are opportunities in these prices. However, if you don’t have spare cash to top up then just hold tight – these times always pass and you are in a well-diversified portfolio, which protects you against the worst of the falls.
However, if you feel worried and want to talk things over, your Financial Planner at Rouse is here to provide reassurance.