The worst days are often followed by some of the best days – a take on the financial markets by Cranwell Wealth Solutions

30th March

We have written many articles for Heathfield News over the years and recently established a new branch of our business within the high street; sadly only to close it temporarily in recent weeks.

Never have we faced times as uncertain, complex and worrying as we do right now. I would like to take this opportunity to wish you and your families well, our loved ones are what really matter and I hope that you all stay happy and healthy.

My aim with this article is to offer a view on the markets and my thoughts are with each and every one of you in the Heathfield community.

The spread of the coronavirus has intensified in many countries and has had an unimaginable impact on our day-to-day lives here in the UK.

Aside from the human cost there is, of course, an economic one. The global scale of the virus has led to some bruising weeks for global markets and we have seen the worst trading day on the FTSE100 index since ‘Black Monday’ in October 1987. Clearly, this has an impact on market sentiment and there will, inevitably, be heightened volatility as the threat of a recession grows.

It is also worth emphasising that, despite these shocks, evidence shows that the worst days are often followed by some of the best days. Therefore, rather than selling low and trying to time the markets, time in the markets and weathering the storm generally reaps rewards as valuations recover. Uncertainty is likely to be the only certainty in the short-term and staying the course with a diversified portfolio of investments, positioned for the long-term, is typically the best route to achieving your goals.

These turbulent times also provide investment opportunities for fund managers. Lower valuations caused by market falls provide scope for our managers to deploy cash and add to positions in companies trading at attractive prices. Indeed, some of our managers have reported portfolio turnover, changes to the holdings in their portfolio of investments, of around 10% and one manager commented “it has been a while since we have been able to add this level of value for our investors”.

A forest with sunlight coming through the trees

If you would like to keep up with frequent updates and reflections on the ongoing economic impact of the coronavirus, please do so at articles are available for everyone to access free of charge and are written by wealth management experts, just head to the insights page.  

For now I wish you all the very best and look forward to welcoming people again to our Heathfield high street office when we are entirely safe to do so.

Stephen Palmer

Cranwell Wealth Solutions Founder

The value of an investment will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

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