Tag: investments

Goodbye 2020… Hello Brexit!

As we say goodbye to 2020, we usually look back and take stock of the events that have unfolded in the last 12 months. Well, I think we’ve all had a pretty miserable year, so let’s look forward instead. But let’s do that with this maxim in mind…

Plan for the worst, but hope for the best! 

This particular piece of wisdom comes from Maya Angelou’s book “I Know Why the Caged Bird Sings.” With the actual quote being
“Hoping for the best, prepared for the worst, and unsurprised by anything in between.”
Which seems incredibly apt considering what we’ve been through and what we currently face.

With this in mind, this article concentrates on what the new Brexit deal might specifically mean to your finances. So once you’ve read this, hopefully you’ll be ‘unsurprised by those things in between’.

A flying start to your holiday?

The one massive ray of sunshine gleaming down the tunnel, is the vaccination program that should see us all safely immunised against Covid-19 by around Easter. This of course opens up foreign travel and holidays once more. So if you’re worried about the effect Brexit may have on the value of your pound abroad, then there’s a simple strategy you can follow to help reduce the impact of Sterling possibly dropping in value.

It’s important to remember that no one knows what the effect on the pound will be. It could end up stronger, weaker or it may stay the same. However, if you’re worried about it’s value against foreign currency for upcoming holidays, then follow this strategy. Purchase at least half of what you need at the best rate you can find today. Then get the rest nearer the time of travel.

Your European Health Insurance Card (EHIC)

EHICs will remain valid until their expiry date with a new and similar Global Health Insurance Card eventually replace the old EHICs.

Currently your (EHIC) entitles you to the same treatment as the locals are entitled to throughout the EU and includes Switzerland, Norway, Iceland or Liechtenstein.

It was expected that the EHIC cover would end after Brexit. However things aren’t as bad as we all expected. If you are a UK national, then you can continue to use your EHIC card in the EU, until it expires, which may be years away. However, you will not be able to use your EHIC in Switzerland, Norway, Iceland or Liechtenstein, as they are not part of the EU.

Once your EHIC card expires, a Global Health Insurance Card (GHIC) will replace it, but you must apply for this new card. Holders of the GHIC will be entitled to emergency or state required medical care for the same cost as a resident in the EU country. Again your GHIC will not cover you in Switzerland, Norway, Iceland or Liechtenstein. 

£85,000 Financial Services Compensation Scheme (FSCS)

Any deposits you have with UK regulated banks will still be protected for up to £85,000 per person per financial institution, under the current FSCS protections.

It’s been widely reported that Financial Services has yet to be negotiated and is not included in the current Brexit deal. Which means that much of the UK’s financial service’s legislation comes from EU directives, with the FSCS continuing post-Brexit and post the transition period. 

There are no significant changes expected to the FSCS, with the only thing that might alter being the amount covered. This is because EU rules state that all member states must provide €100,000 protection and currency fluctuations may cause changes in the current UK amount of £85,000.

Expat Pensions and Bank Accounts

The current system known as ‘Passporting’, where any UK or EU financial firm (including those in Norway, Liechtenstein and Iceland) can offer their products and services to UK customers and Expats has now stopped.

If you are an Expat, this means that UK IFAs can NO LONGER advise you based upon their UK authorisation. As they now have to also hold an EU authorisation.

If you are an Expat with a UK based Private Personal Pension or bank account, you may also have a problems obtaining service and advice, due to the failure of the government to negotiate any aspects of Financial Services during the recent trade deal.

Single Euro Payments Area (SEPA)

Post Brexit the UK will remain part of a key Euro payments system. Which means that payment service providers based in the UK will still have access to the central payments infrastructure such as SEPA. So those of you who wish to make cross border payments will be able to continue doing so, at the current low costs or free of charge where applicable.

Slightly closer to home – your Mortgage & Savings rates

One happy or sad result of Brexit, depending on whether you’re a mortgage customer or a saver, is that the Bank of England dropped interest rates to 0.25% following the EU referendum result, in the hope of holding off a recession.

Right now, because of the pandemic it’s at its lowest rate ever, at just 0.1%.

It has been reported that the Bank of England recently did an exercise with UK banks to check they could cope with negative interest rates; and there’s little doubt that, even with our new deal, Brexit is likely to fuel this further.

However, even if the short-term impact of negative interest rates is detrimental to the economy, it pales into insignificance when we stop to count the financial cost of fighting the pandemic.

As always, rather than second-guessing the shifting economic sands, it may be better to simply focus upon your own personal circumstances. Make sure that you have the best mortgage and savings rates possible and hopefor the best, prepare for the worst, and try not to be surprised by anything in between.

As always, if you have any questions regarding any aspects of your finances in general, then please don’t hesitate to contact one of our team at Bridgewater Financial Services; where one of our independent experts will be on hand to help in any way.

 

Stay Safe!

How safe is your cash post Brexit?

The impact of Brexit on Financial Services and the FS Compensation Scheme

As we stand right now (December 2020) The UK is leaving the European Union (EU) on 31 December 2020. EU law will continue to apply to the UK financial services regulations through the existing agreement for UK firms to do business throughout the EU without obtaining further financial services authorisation (something known as Passporting) until then. 

Passporting has allowed firms authorised in the European Economic Area (EEA) to conduct business within the EEA based upon member state authorisation. The FCA has given guidance to firms that we should NOT expect these current arrangements to remain in place once the transition period ends on 31 December 2020. As current negotiations regarding a trade deal never included any discussions regarding financial services, you should assume that any financial interests you may have abroad, will no longer be protected by the FSCS once passporting arrangements between the UK and the EU end.

You may need to take action, in order to be ready and protected following Brexit. Which is why I have outlined a number of likely scenarios that UK customer with funds invested in EU jurisdictions may be facing. Obviously this also applies to EU citizens with funds invested in the UK.

Either way, there are things you may wish to consider to ensure that you and your money remain protected from 1 January 2021 onwards. 

Financial Services Compensation Scheme post Brexit

The FSCS is there to provide protection and compensation to customers or investors of authorised financial services companies that fail or go out of business.

For UK based customers of firms authorised in the UK, the FSCS will not change post Brexit. However, for customers and/or firms based in the EEA (including Liechtenstein, Norway and Iceland) there maybe changes to the protection and compensation available. 

Deposit Protection with the FSCS

Protection via the FSCS will depend upon where the firm in question is authorised and which jurisdiction the firm uses to hold your deposits. My advice is to check with the firm for more information. In order to find where a financial services provider is based or authorised, the Financial Services Register is a good place to start,

Any deposits held in a UK branch of an EEA bank will be covered by the FSCS and your funds will be protected up to £85,000 post Brexit.
Deposits held in UK branches of firms based in Gibraltar are seen differently and are not covered by the FSCS; and will continue to be the responsibility of the Gibraltar Deposit Guarantee Scheme.  

Deposit Protection outside of the FSCS

At 11pm GMT on 31 December 2020, any FSCS deposit protection for funds held in EEA branches of UK firms will cease.

Although there should be an automatic transition to protection provided by an EEA deposit guarantee scheme. However this will be dependent upon the specific rules that apply to each EEA jurisdiction. Any change in, or loss of, protection should be notified to customers by firms prior to this date, but it’s always worth being proactive and checking things out yourself. 

Post Brexit, anyone with funds in EEA-authorised firms within the EEA will see no changes in their current deposit protection, as laid out in the EEA deposit guarantee scheme. 

Further information is available by contacting the firms in question, or visiting www.efdi.eu/full-members for a full list of EEA deposit protection schemes. 

Investment protections covered by the FSCS

If you are currently a UK based customer of an EEA authorised investment firm that operates within the UK, then you are currently protected by EEA compensation schemes.  Following Brexit, the protection that the FSCS provides will be extended to customers of EEA firms with UK branches; in the same way that cover is currently provided to customers of UK firms.  

However, it’s important to note that all customers of EEA authorised firms without a UK branch will no longer have access to the FSCS. The only exception is where there is already established FSCS cover for the operations and activities of certain fund managers. If you are in any doubt, my advice would be to contact your provider and find out for sure if your investments are covered by a relevant compensatory scheme.

Whether you live in the UK or the EEA,customers of a UK branch or of a UK authorised investment firm, will continue to benefit from the protection provided by the FSCS pre and post Brexit. This is because the FSCS has no residency requirements in order for investors to qualify for cover.

Investments no longer covered by the FSCS

If you are a customer of a local EEA branch of an existing UK authorised investment firm then you may not be protected by the FSCS post Brexit.

It is probable that the FSCS will not protect customers of defaulting (insolvent) EEA branches of UK authorised firms after 31 December 2020.

However, you may be protected by the local jurisdiction’s investor compensation scheme, but it may not provide the same protections as the existing FSCS scheme (up to £85,000 of cover). If you are in any doubt, please contact the provider and seek clarification prior to the Brexit deadline.

As always, if you have any questions regarding current FSCS protections, or if you have any questions regarding any aspect of your finances, then please don’t hesitate to contact one of our team at Bridgewater Financial Services; where one of our independent experts will be on hand to help in any way.

Stay safe

 

 

 

You can’t predict the future, but you can learn from the past

If I had a penny for every time I heard someone say “If only we could predict the future” as they think about investing in the markets, then I’d be giving Warren Buffet a good run for his money.

Having said that, it always strikes me that we actually can go a long way to predicting market behaviour. It’s our ability to look back in time, into the established long-term patterns of the markets that can unlock the key to future returns. The past can provide a good indication of the economic cycles and their effect on future markets across the world. 

So what has history taught us?

If there is one thing that becomes clear when you examine the performance of the stock markets, especially in the UK and the USA, it’s that there is a consistent pattern of growth and returns; with world markets more frequently rewarding investors despite periods of economic slowdown and uncertainty.

Over the last 100, in the UK All Share Index, we’ve seen an average annual return of 7%. Obviously there have been years where large drops and gains have occurred, such as 1974, where the index fell 55% and the 1975 bounce back of a 136% increase.

However throughout its history, the standard deviation has been 21.5. Put simply this shows that for 66% of the last 100 years, returns have been between -14.5% and +28.5 with positive returns being delivered in 65 of the 100 years.

Putting your best FTSE forward

On 3 January 1984 the FTSE 100 was created. The FTSE is made up of 100 of the largest (by market capitalisation) companies in the UK; what we often refer to as ‘The Blue Chips’ and are the benchmark by which the stock market is measured and referred to in the UK.

To give you an idea of how The FTSE 100 has performed over the years, in 1984 it started with a value of 1000 and ended 2019 at 7542.44; which was itself 21.1% higher than where it was at the end of 2018.

In terms of really choppy waters, the largest one-day fall of the modern FTSE 100 was on Black Monday 20 October 1987, when the index fell by 12.22%. Whilst following the property and financial crashes of 2008 the annual price return was -31.3%. With the largest annual price return being 35.1% in 1989.

So we can see that although the FTSE 100 experiences its fair share of turbulence, the long terms returns have always been positive growth 

The Covid Crash

The markets have seen crashes happen before and they’ve always bounced back. Growth seems inevitable, although the trajectory, like all things in life, has its ups and downs.

However long-term data, both in the UK and in the markets overseas, clearly show that the trend is always one of growth.

Bear and Bull markets are created by panic selling and buying of shares in short-term reactionary reflexes to the growing and checking pains of the economy, both nationally and worldwide. 

So if your not into the short termism of Bull and Bear trading, then the trick is to understand the longer-term view, approach the investment markets armed with knowledge and patients and to sit fast in turbulent times and wait for the markets to come back. 

Make sure you’re working with a map

I think that the fastest way to ensure you end up on the losing side of the investment market is to just jump in with the hope that prices will rise across the board.

There are always winners and losers in both Bull and Bear Markets and throughout normal trading conditions. The trick is to understand where the potential opportunities and pitfalls are. If you’re not completely confident that you know the markets in the same way as the professional traders do, then please make sure that you are talking to an independent financial expert when seeking advice on any form of investing. 

There are some interesting points regarding the FTSE that you need to bear in mind, as they will certainly impact upon its overall performance as the years go by. 

For example, the index is never a good indicator of how the UK economy is fairing as a whole, as a many companies listed earn 75% of their revenues from overseas. With almost a fifth of the companies listed involved in mining and oil, all of who will face increased challenges as we move to a more environmentally aware existence, theirs is bound to be a downturn in that part of the index. 

There will always be industries that seem to be on the up. Green Energy, Pharmaceutical and Electric Cars spring to mind. History also shows us that their runs will not last. Just think about the dot com boom and what happened to most of those multi-million/billion valuations. 

If you’re going to invest by sector, do your homework and seek expert advice. In fact, whatever investments you are thinking of making, speak to an expert independent financial adviser before you do. It could open your eyes to a whole raft of unthought-of possibilities and may save or make you a fortune! 

Start with the right advice and stick with it

Please remember that markets can go down as well up and that past performance is no guarantee of future investment returns. But if you are going to invest, do your homework and seek expert advice.

The first thing you should do is to seek out expert independent financial advice. Chances are that it could open your eyes to a whole raft of unthought-of possibilities and may save (or make) you a fortune! 

As always, we at Bridgewater Financial Services are here to provide expert and independent advice and to answer any questions you have regarding investing in stocks, shares, bonds or any other investment strategy you may be considering. 

Please speak to an expert, even if it isn’t us, before you consider putting your money into the markets.  

Stay safe

Post Brexit transition and financial services in the EU

Now that we have officially left the European Union and entered a process of “transition”, a few of our ex-pat clients have been asking me what effect this now has; and how will it impact beyond 31 December 2020.

How will Financial Services and investment opportunities change post 2020?

Dealing with the longer-term question is easy, although it’s also a little unsatisfactory, as the simple answer is that nobody know for sure what the financial and investment landscape will look like post 2020’s trade negotiations with the EU.

Popular opinion is that it would be political suicide to hand control of the jewel in the crown (our financial services industry) over to the EU, or to let the EU impact, change or restrict it in any significant way. That would be bad for the UK, the EU and the world economy in general. The feeling is that we’ll be left with something that looks largely like what exists today.

What is the immediate impact on Bridgewater Financial Services dealing with our EU clients?

Well the simple answer is ‘nothing’. There has, and there will be, no change to our ability to full service and advise our clients throughout the European Union. We are currently pass-ported, via the Financial Services Authority, to help and advise new and existing clients in most EU jurisdictions.

In terms of the UK we are, and will remain, integrated with the European Union with regards to regulation, distribution and classification of all investment funds.

With the Irish UCITS funds remaining fully available in all of their current locations. 

As far as Bridgewater Financial Services is concerned, we will continue to go about our usual business and deal with our EU clients up to 31 December 2020 without any change whatsoever. At the start of 2021 we will either carry on dealing direct with our EU clients, or we will do so via an EU company. It all rather depends upon the outcome of the trade negotiations that will take place throughout the year. 

Once we have a realistic indication of what the outcome of those negotiations is likely to be, we will advise all of our existing clients on how we will go about providing continuation of service and advice. 

Rest assured that we will continue to provide our advice and services in as seamlessly as possibly. Our clients in the European Union are extremely important to us and we understand how important we are to them too. Which is why we will continue to be providing unfettered access to our advice and services well into 2021 and beyond.

Is there anything you should be doing?

Again, the general answer to that question is ‘no’. If there is an individual case that we feel needs examining, we will contact you direct and advice you on the opportunities or concerns we have identified. 

If you are still uneasy regarding the future impact of trade negotiations on your investments and portfolios, then please get in touch with us at Bridgwater Financial Services and we will be delighted to help and advise.

But do rest assured that there are no immediate changes coming. We understand that uncertainty, but there really is no need to panic or worry. 

We will keep you fully informed of any changes, once they become clear. In the meantime, as we always say, the best form of action in uncertain investment markets is to simply wait and see.

20-20 vision for your finances

Happy 2020!

We’ve just stepped into a new decade and all the surprises that brings. But as we set off on the next chapter, I always think that the exciting thing is the uncertainty. Yes we know some things are definitely going to happen, like most of our New Year’s resolutions will fall by the wayside, the UK will leave the EU and that we’ll all get older and hopefully a little wiser. 

However when it comes to the markets, we can’t know for sure how they are likely to impact our personal finances. Having said that, we do have the next best thing available to us; our ability to review and amend!

Whatever your long-term plans may be, now is the time to review how the last year or two has performed for you and to put yourself in the right position to take full advantage of the financial opportunities now available. A review of your Savings, Estate Planning, Insurance Covers, Investments and Pensions now will allow you to make any changes and tweaks in your finances in order to make sure that you reach the end of the 2020’s in the financial position that you set out to achieve.

Now’s the perfect time to inspect an ISA

If you don’t currently have an ISA in your portfolio, then can I suggest that you add one to your list of things to consider this year.

It’s a great tax-efficient way of approaching investments, as your returns are free of income and capital gains tax. You can invest in an ISA up to a limit of £20,000 of which £4,000 can be paid into a LISA (for those eligible). 

As the annual deadline for ISA’s is 5 April 2020, this means that you potentially have two bites of the cherry available to you throughout 2020. By that I mean that you can currently take advantage of the ISA Tax-free opportunity for the remaining of the tax year, plus you can then do the same again on 6 April 2020. Please don’t leave it too late though, as some providers take several working days to process new ISAs, so leaving things until the beginning of April may mean you miss the closing deadline.

Take a look at a LPA And Will

The chances are that you could be amongst over 50% of the UK adults, including many in their 50’s and 60’s, who don’t currently have a Will in place. If that’s the case, could I respectfully suggest that writing one really should be high on your financial agenda for 2020. 

Whilst you may already have a Will in place, or high on your ‘To Do’ list, can I also prompt you to consider Lasting Power of Attorney (LPA), as incapacity often strikes without warning. Which means that sorting out a LPA can save your estate and it’s beneficiaries considerable costs and avoid unnecessary and lengthy delays.

If this all sounds a bit daunting, please be assured that putting Will and a LPA in place is nowhere near as difficult or costly as many people think. If you are unsure regarding whom to approach to best sort these things out, then start by contacting us. We can easily arrange Wills and LPAs through our sister company Bridgewater Wealth Protection www.bridgewaterwp.com

If you do already have a Will or LPA, then please take this reminder as an opportunity to review it. Checking that it is up to date and that it reflects your current wishes.

Improve your Insurance

Even if you have insurance covers in place, now is an opportune time to review things. Our advice would be to just make sure that each plan covers you for everything you need and that the costs are correct. Your circumstances may well have changed since you took any cover out. If that’s the case, then it’s critical that you ensure you are covered for all you require and that there are no plans available that could provide better cover and possibly a lower premium too.

The wrong product can end up costing you a great deal of unnecessary expense and stress, so please take the time to review and compare cover options.

Investigate your Investments

After a bumpy year (The Queen’s words, not mine) in politics and the markets, now is an excellent time to take stock and to just check that your investment strategy is on course to achieve your goals. 

An excellent starting point would be the latest report regarding your mutual funds. There you can check to make sure that they still match your appetite for risk and that you are also happy with where your money is being invested.


A good tip, for when you consider your investments, especially when thinking about your exposure to risk, is to always include your pension, ISA’s funds and stocks together. Do this even when the funds are spread around different accounts and investment products, that way you will get a better feel for your overall portfolio.

Peer into your pension

Lastly and certainly not least, is your pension. 

Your pension is one of the most valuable assets you can have, yet it often gets overlooked; and I feel that more often than not, we don’t give pensions the attention that they deserve. 

Regular reviews of your Pension makes excellent financial sense, especially as legislation has changed massively in the last few years. So if you haven’t recently reviewed your pension position, then now would be a very good moment to do so.

During your review, ask yourself the following questions:

• Are the level of your contributions correct? Too little could leave you
wanting in retirement and too much could create problems with your
Reduced Lifetime Allowance
• Does the strategy still fit with your time horizon, changes in your current
situation or attitudes to your investment risk?
• Is your pension scheme up to date and able to take advantage of the new
pension freedoms, or is it an older scheme that can’t benefit?
• Does your pension fit with your retirement and estate planning?
• If your pension is a Final Salary Scheme, then with the increases in
transfer values, is it worth requesting a transfer value and restructuring
the pension?

Although this isn’t every question you should ask, they are certainly questions you should know the answers to, if you want to ensure that your pension is in the best place it can be.

We’re here to help whenever you need us

Although no one can see into the future, having a close look at your finances now is the difference between approaching 2020 with a clear financial strategy or setting yourself up for a cry of ‘I should have gone to Specsavers’ later in the year! 

I hope that this blog goes someway to starting the new financial year off on the right foot. If however there is something specific you would like to talk to us about regarding your plans, then please get in touch with us at Bridgewater Financial Services, where we will be delighted to help guide you through your individual options and strategies.

Wishing you all a Happy and Prosperous 2020.

Market Volatility a lesson from NASA

Don’t Take A Giant Leap

Back on the 20thJuly we celebrated the 50thanniversary of the moon landings. I was totally in awe of Neil Armstrong, who took over the piloting of Eagle, from the computer once he noticed that the preselected landing place wasn’t going to be suitable.

Both he and Buzz Aldrin calmly worked together, whilst the vital fuel that would get them home was used to pilot Eagle over the rocky surface to a safe point of touchdown.

It was this calm, panic free approach that saved their lives, the mission and the hopes of the whole planet.

They trusted what they knew to get them through what must have been a terrifying descent. But they stuck to the plan established by NASA and they achieved what they’d all set out to accomplish.

I can’t help thinking that this idea of sticking to a plan, no matter how appealing it may be to abandon it, is a lesson for us all in the current investment markets, as we go through periods of increased volatility.

I say this because, unlike Apollo 11, we are not actually in uncharted territory. History shows us that volatility is a normal function of the markets.

Our long-term journey as investors will have highs and lows. However we should no more emotionally jump from a growing market than we should from a declining one. As reacting emotionally to market volatility could be far more harmful to your portfolios performance, than the market drop itself.

Here’s something to remember

This interesting graph showing the Dimensional UK Market Index returns by year (from 1956 – 2018*), should help put things in some perspective. As we can see, the markets have provided positive returns for investors for 47 of the 62 years shown (that’s 75% of the time).

So whilst it is sometimes difficult to remain calm during a market decline, it is however important to remember that volatility really is a normal part of investing.

Investors, who do seem to be able to time the market, usually do so with more luck than judgment. With the general wisdom suggesting that the big returns in the total performance of individual stocks over time, are usually produced in a small handful of days.

As investors can never really accurately predict when these days will come along, the prudent strategy would seem to suggest that remaining invested during these periods of volatility, rather than abandoning the stocks, means that investors won’t be on the sidelines on the days when the strong returns occur.

Screen Shot 2019-09-23 at 19.53.06

In a changing market, knowledge is power

Hear are the most frequently investment questions I get asked in times of volatility:

I’ve been looking at funds with strong past performances; can I assume that they will do well in the future?
Whilst some investors are known for selecting mutual funds based on past returns, research suggests that most US mutual funds in the top 25% of previous five-year returns did not maintain that ranking in the following five years.

So the short answer would be: No, past performance is just that, history. It offers little insight into possible future performance.

Is being a successful investor all about out-thinking the market?
The short answer is to let the markets do the thinking for you. It’s a fair assumption that people want a positive return on any capital they invest. Over time history shows us that the equity and bond markets have provided growth of wealth that has more than offset inflation. So instead of fighting the markets and trying to out-think them, let them work for you. Remember, financial markets reward long-term investors.

Should I think of stepping out of the UK and exploring international investing?
It’s a good question. We all know that diversification can help reduce risks and that diversifying only within your home market limits that benefit. Not only does global diversification extend your investment opportunity; but by holding a globally diversified portfolio, you are better positioned to seek returns wherever they occur.

To give you an idea of the opportunity, according to MSCI UK and ACWI Investable Market Index (IMI), the UK is one country with 364 stocks; whilst the global opportunity for investments ranges across 47 countries with 8,722 stocks.

Will constantly changing my portfolio help me achieve better returns?
As it’s almost impossible to know what market segments will outperform the others, it’s better to avoid unnecessary changes that can be costly.

Can my emotions affect my investment decisions?

There is a vast body of psychological research that shows that we struggle to separate our emotions when investing our money. Just remember that markets go up and down. So kneejerk reactions are usually poor investment decisions.

Every time I hear the news, I’m tempted to make changes to my portfolio,
is that a good idea?

Day to day commentary can make us question our investment discipline. Some news will stir anxiety about the future, whilst other news tempts us to chase the latest faddy investments.

My advice is to always consider the source and to keep your long-term objectives in focus.

I feel like I need to do something – so, what should I be doing?

Get another perspective on things, especially and independent and expert one. Talk with your financial adviser who can help you focus on actions that add value.
Sticking to actions that you know you can control can certainly lead to a better investment experience.

  • Create an investment plan to fit your needs and risk tolerance.
  • Structure a portfolio along the dimensions of expected returns.
  • Diversify globally.
  • Manage expenses, turnover, and taxes.
  • Stay disciplined through market dips and swings.

Stay on mission

Neil and Buzz didn’t panic. They didn’t cancel the mission, because things looked tough. They trusted in the plan. They stuck to a pre-agreed course of action and rode out the challenges that faced them on the descent to their ultimate goal.

I totally appreciate that market volatility can be a nerve-racking time for investors. However, reacting with your emotions and altering long-term investment strategies could prove more harmful than helpful.

Sticking to a well-thought- out investment plan, ideally agreed upon in advance of these periods of volatility, you’ll be better prepared to remain calm during periods of short-term uncertainty.

As always, if you have any questions regarding your current or future investment strategies, then please contact us at Bridgewater Financial Services where we will be delighted to help.

* Past performance is not a guarantee of future results.