{"id":525,"date":"2018-10-11T18:25:29","date_gmt":"2018-10-11T17:25:29","guid":{"rendered":"https:\/\/aspenfs.co.uk\/?p=525"},"modified":"2018-11-20T15:47:39","modified_gmt":"2018-11-20T15:47:39","slug":"investing-in-turbulent-times","status":"publish","type":"post","link":"https:\/\/aspenfs.co.uk\/investing-in-turbulent-times\/","title":{"rendered":"Managing Investments during turbulent times"},"content":{"rendered":"<h5>2018 has been a rocky road for investors, with any number of data charts, historic analogies and fables to consider<\/h5>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-530 alignleft\" src=\"https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/beach-cave-coast-163872-1024x768.jpg\" alt=\"\" width=\"284\" height=\"213\" srcset=\"https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/beach-cave-coast-163872-1024x768.jpg 1024w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/beach-cave-coast-163872-300x225.jpg 300w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/beach-cave-coast-163872-768x576.jpg 768w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/beach-cave-coast-163872-1920x1440.jpg 1920w\" sizes=\"(max-width: 284px) 100vw, 284px\" \/><\/p>\n<h5>The economic cycle is a changing dynamic and periods of uncertainty can make even the most resolute saver worry.\u00a0 In the immediate aftermath of drops in &#8216;markets&#8217;, nervous investors can make the situation even less predictable.<\/h5>\n<h5>There are many drivers to the current market falls and increasing volatility;<\/h5>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<h4>Longer-term planning<\/h4>\n<p>While markets are swinging wildly, short-term performance does not provide the best point of reference.\u00a0 Make sure your holdings are diversified, so that you have a chance of ironing out the peaks and troughs<\/p>\n<p>There is no secret to investing, timing the markets is very stressful and difficult, because you cannot tell how investor sentiment will affect the day to day movements<\/p>\n<p>For those paying regular contributions, these cycles can add value in future, as the low points provide opportunity and lower cost acquisitions.<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Recovery from 2008 financial crisis has been longest upward trend for some time and an element of &#8216;how long can it continue&#8217; has unnerved investors<\/li>\n<li>Trade wars between the US and China has had a dramatic effect in the last week, with tech companies taking the initial brunt of turbulance<\/li>\n<li>Brexit negotiations have become a stumbling block, as investors want to have something tangible to base future decisions upon<\/li>\n<li>Dollar strength has had a negative affect on Asian shares, which predominantly rely on Dollar denominated debt<\/li>\n<li>Ending of Quantitative Easing (central bank supporting asset prices) &#8211; as asset classes transition away from the recent underpin of injected money, the process will be volatile<\/li>\n<li>Divergence of economic performance, where the US is dominating and outpacing other countries in terms of growth, household income and business investment.\u00a0 The Fed is dealing with this growth to stave inflation, but this is putting additional strain on other markets<\/li>\n<li>Volatility is to be expected as markets consider the affects of higher base rates and rising inflation.<\/li>\n<li>A large part of the daily equity price falls are driven by concenrs of a recession in the US, spreading globally.\u00a0 Some view that the recent tax incentives will come back to bite in 2020, as the benefits wear off and the cost to the US Treasury are realised<\/li>\n<li>Outside of the daily fluctuations, US growth remains strong supported by fiscal policy, inflation is picking up but not unduly, and the Federal Reserve has been clear on the path of future interest rates.\u00a0 Elsewhere, growth is moderating but still firmly positive in Europe and Japan while Emerging Markets are facing some idiosyncratic challenges but are generally in good shape<\/li>\n<li>On a broader basis global economic growth continues to be positive, estimated to be around 3.7% (IMF 24.09.18), although in areas of uncertainty such as the UK it has fallen \u2013 natural fears over Brexit have eaten into consumer and corporate confidence<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-526 alignright\" src=\"https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/achievement-adult-book-1043514-1024x897.jpg\" alt=\"\" width=\"281\" height=\"246\" srcset=\"https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/achievement-adult-book-1043514-1024x897.jpg 1024w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/achievement-adult-book-1043514-300x263.jpg 300w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/achievement-adult-book-1043514-768x672.jpg 768w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/10\/achievement-adult-book-1043514-1920x1681.jpg 1920w\" sizes=\"(max-width: 281px) 100vw, 281px\" \/>Investment Plan<\/h3>\n<p>Having a plan is essential and keeping to it is where success lies.\u00a0 Hoping for the best, will not work.<\/p>\n<p>Review your ideals, risk assess your strategy, consider your timescales<\/p>\n<p>The economic back drop changes over time and your investment strategy should consider those changes<\/p>\n<h3>Timing<\/h3>\n<p>Timing the markets is virtually impossible, but Time In the markets can pay off<\/p>\n<p>Paying regularly has good advantages on a long-term investment.\u00a0 Not\u00a0only does it instill a sense of discipline to one\u2019s investment habits but also avoids trying to second guess market movements.<\/p>\n<p>Essentially, when investing in an investment fund, your contribution buys units.\u00a0 When markets rise, you would buy less units, and when they fall, a higher number will be purchased.<\/p>\n<p>As most investment funds fluctuate on a regular basis, your unit purchasing power does the same.\u00a0 This process is called\u00a0\u2018pound cost averaging\u2019 and it can make for a smoother ride over the longer-term.<\/p>\n<h3>Don&#8217;t make quick decisions<img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-462 alignleft\" src=\"https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/01\/pexels-photo-226746.jpeg\" alt=\"\" width=\"367\" height=\"245\" srcset=\"https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/01\/pexels-photo-226746.jpeg 367w, https:\/\/aspenfs.co.uk\/wp-content\/uploads\/2018\/01\/pexels-photo-226746-300x200.jpeg 300w\" sizes=\"(max-width: 367px) 100vw, 367px\" \/><\/h3>\n<p>The temptation to pull your investments is often the first thought.\u00a0 Cashing in can be expensive, even if it feels like a safer bet.<\/p>\n<p>Many investment funds already hold cash reserves and once out of the market place, there is a cost to starting again later<\/p>\n<h4><\/h4>\n<p>&nbsp;<\/p>\n<h4>Longer-term planning<\/h4>\n<ul>\n<li>While markets are swinging wildly, short-term performance does not provide the best point of reference.\u00a0 Make sure your holdings are diversified, so that you have a chance of ironing out the peaks and troughs<\/li>\n<li>There is no secret to investing, timing the markets is very stressful and difficult, because you cannot tell how investor sentiment will affect the day to day movements<\/li>\n<li>For those paying regular contributions, these cycles can add value in future, as the low points provide opportunity and lower cost acquisitions.<\/li>\n<li>Taking income from your investments?<\/li>\n<\/ul>\n<h4>Taking Income<\/h4>\n<ul>\n<li>Consider holding higher levels of Cash, so that you take your income from your cash reserves, inside or outside of your investment portfolio<\/li>\n<li>Cash reserves do not rise and fall with asset prices, so your income is coming from a secure element<\/li>\n<li>Consider the sustainability of your investment fund against your drawings, so that you can see how it could affect the long-term integrity of your income needs<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Take advice<\/h3>\n<h5>The amount of commentary and information on the worst days of a market cycle can be over-whelming<\/h5>\n<h5>An experienced Adviser will have worked their way through similar episodes in the economic cycle and while they are all different, many aspects are the same<\/h5>\n<h5>During tough market cycles, advice helps you take the emotion out of investing and provides an objective view<\/h5>\n<h5>As experienced advisers, we will interogate the investment funds you hold, so that you can understand exactly where your money is invested.\u00a0 We can also look at charges and the options you have so that any decisions you make are relevant to you and your expectations<\/h5>\n","protected":false},"excerpt":{"rendered":"<p>2018 has been a rocky road for investors, with any number of data charts, historic analogies and fables to consider The economic cycle is a changing dynamic and periods of uncertainty can make even the most resolute saver worry.\u00a0 In the immediate aftermath of drops in &#8216;markets&#8217;, nervous investors can make the situation even less [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[4,5],"tags":[],"_links":{"self":[{"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/posts\/525"}],"collection":[{"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/comments?post=525"}],"version-history":[{"count":0,"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/posts\/525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/media\/533"}],"wp:attachment":[{"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/media?parent=525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/categories?post=525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aspenfs.co.uk\/wp-json\/wp\/v2\/tags?post=525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}