27 March 2017

Volatility brings opportunity

While market performance post-Brexit has so far been stronger than expected, some of our investment customers have told us that they worry these are events of such enormity that recent stock market gains are simply the calm before the ‘storm’ – and the true impact is yet to be felt.

But, according to Nationwide Financial Planning Manager (FPM) Grant Pickering, fund managers are experienced at anticipating and accounting for such events.

“If Brexit has a knock on effect on the market it will not be the first political event to do so,” he explains. “If we glance back just a few years, we can identify a range of historically important events – from China’s slowing growth expectations and the global oil price collapse to the struggling Greek economy and the impact this had on some members of the European Union and the Euro.”

Keeping in touch

Pickering says that, as a Financial Planning Manager, he values the contact he has with customers.

“This is an important chance to talk about these events with customers; to help them understand how they could affect their portfolio in the short term and view investing as a longer-term activity,” Pickering says.

“But I am also able to reassure them that the fund managers are used to creating and managing investment funds which anticipate and account for such peaks and troughs.”

Customer concerns

Pickering says that one customer concern is that the current strong performance of the FTSE 100 is short term and once Article 50 is activated that there will be a correction in the markets.

“They also worry about the impact of ‘Trumponomics’ going forward,” he comments. “But having a face-to-face meeting means we can explain that they've been recommended a portfolio or Primary fund containing a range of assets, to make up a diverse collection, which is geared to perform over the time-span which suits their objectives and aspirations.”

“Different assets will go up and down in value, but investing in a diverse range of different assets helps you to balance out any short-term movements” he adds.

Providing a choice of portfolios

“Some companies have seen their share price surge, whilst others have fallen. But customers should consider that the fund managers we work with are experienced in looking for tomorrow’s opportunity.”

“At the end of the day, we FPMs welcome volatility, because without ups and downs you have no opportunity.”

Find out how your investment portfolio is designed to ride out market peaks and troughs.

Get in touch with a Nationwide Financial Planning Manager today

Important information

Please remember that the value of your investments can go down as well as up so you may get back less than you originally invested.

If you have sole or joint savings of £50,000 or more, or a sole or joint income of £50,000 or more per year then investment advice from one of our Financial Planning Managers may be right for you.

Past performance is not a guide to future performance.

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