Even though we provide weekly app and monthly blog updates on market performance, we know keeping you informed during periods of increased volatility sometimes requires additional reassurance.
And, given the changes to the investment landscape since our last update on increasing cash allocation, we wanted to let you know what we’re doing to protect Plans when markets are volatile.
Diversification as a form of defence...
With markets jittery at the prospect of a trade war and global recession, shares have seen some dramatic falls. Thankfully, your increased cash position has:
- Helped protect your Plan(s) from this volatility.☂️
- Given us the flexibility to react to market events as they happen.💸
At times like these, a diversified Investment Plan helps cushion the impact of drops in share markets.
And, while any drop in Plan value is uncomfortable, we're always looking out for any opportunities presented by volatile markets.
...and attack, too!
The recent drop in markets gave us a good opportunity to use our cash position to buy shares at lower prices, offering these assets at an attractive value.
As we continue to face uncertain times, this thinking has been balanced with caution.
This approach also coincides with the upcoming company reporting season, where we’ll find out the profitability of the organisations we’re investing in.
So, what’s the plan for my Plan?
Good question, the answer for which starts with the fact we’ve used 2% of your cash to buy US and European shares — taking advantage of their lower prices.
We see this as a confident-but-cautious move, with the amount of cash in Plans still higher than in normal circumstances.
With potential storm clouds on the horizon, however, it also gives us the flexibility to respond accordingly. Whether or not this storm materialises depends on how the wind blows in the short-term.
As long-term investors, however, we do not doubt that clear skies will eventually be with us. That’s why, when reaping the potential rewards investing has to offer, it’s crucial to remember that it’s a marathon — not a sprint.
Because, when the time comes, our Team’s ability and willingness to respond swiftly to market movements becomes your advantage.
Stay in touch
If you still have questions about any of the above, please don’t hesitate to contact our award-winning Customer Care Team, who’ll be more than happy to help.
With investing, your capital is at risk. Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
