UnaVida | Will Investment Markets Wobble ?

Will Investment Markets Wobble ?

By now you will probably be immune to my constant warnings about the current pricing of equities, instead you will be basking in the warm glow of the increase in value of your investment and pension portfolios.

Today marks the anniversary of an historic stock market event. Who could forget “Black Monday” when in 1987 the stock market experienced a drop it had not seen in nearly 60 years?

In fact the market dropped so severely that most investors believed that it would keep dropping until all of their money had gone, quite naturally they panicked and sold out at the low point of the market. That reaction is called the Behaviour Response and that is who the majority of investors will never match investing professionals.

Have we learnt from past ?

Remember that severe under-performance occurs in times of market turmoil and IF YOU SELL at that point then there is a very good chance that when you choose to step back into the market, you will have little chance of getting back in at the same low price you sold out at.

If you read my last blog then you will be aware that there is a high market alert on global stock markets and that my advice was to trim your exposure to equities.

Typically investors are extremely adverse to loss, preferring to make small profits rather than a big loss. So your natural reaction to any adverse market fall will be to SELL SELL SELL.

If you wish to trim your portfolio do so now, don’t wait until the market collapses!

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A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

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The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.