I realise how disconcerting it is to see share markets suddenly drop on 4 August. Potentially they may fall a further 2-3% over the next few days.
However I expect them to rally later, and when they do it will probably be just as quick and hence nigh on impossible to exercise any market timing buying into or selling out of holdings.
So for clients with existing investments in shares I am recommending that you hold your current position.
I think it would be the wrong decision to move out of shares now as you will be doing so at lower less attractive valuations and will miss out on the market recovery which I feel will come in the near future and thereafter further stockmarket growth over the next few years.
That all being said, where investments are held in cash, fixed interest and property, this represents a potential opportunity for a strategic asset allocation switch into shares. Such a switch will lead to an increase in exposure to risk but at times like this, you have to look for the opportunities as well.
Finally (crass as this statement may be presently) please remember
investments can go down as well as up.
If you would like to discuss your portfolio with us, please do not hesitate to get in touch on 0845 505 1450
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