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    May 17, 2020
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PROMOTION The importance of staying invested The COVID-19 pandemic and associated lockdown from governments across the world is unprecedented, yet market volatility and downturns are a constant for every long-term investor, making it important for investors to understand what action they should take during these times /our financial adviser will take be difficult. However, investors should This material is for general information time to understand exactly how much risk you are prepared to take note that history demonstrates that only and does not constitute investment, holding your nerve is often the best way tax, legal or other forms of advice. You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation. take and how much loss it would to ensure that long-term goals remain on track. be practical to sustain, constructing an appropriate portfolio and strategy around this. By diversifying that portfolio & Poor's 500 tndex had a compound to meet the agreed risk mandate, it can be annual return of 6.1%. But if the ten best constructed to focus on your long-term From 2000 to 2019, the Standard days during that period were excluded, goals - whether that is capital growth, an the index would have had just a 24% compound annual return. Excluding the 25 best days, it would have had a -1.0% income or a mixture of both - to weather short-term volatility. Whilst many investors will have experienced significant temporary falls in the values of their portfolios before, such as during the 2008 financial crisis, the situation today carries with it a global compound annual return. Holding your nerve and staying invested is of paramount importance, because one of those 'best' days could be just around the corner. These 'best' days are often grouped together with the 'very bad' days, making it extremely health issue and the concern that oneself and ones loved ones are at genuine risk of falling seriously ill. The economic impact is likely to cast a long shadow. For some, this creates a perfect storm difficult to time a market exit and subsequent re-entry. Over the last 120 years there have been 103 bull market years (where market prices have increased by 20% or more) and just 16 bear market years (where they have decreased by the same degree or more) and whilst these markets will last for varying of emotion that can lead to an instinctive desire to take a flight to safety, exiting investment strategies in favour of cash. Your financial adviser should look If you would like to discuss investing, or an existing investment portfolio through the 'noise' and using their knowledge and experience, reposition investment portfolios to minimise the effect of sustained market falls, with a Chartered Financial Planner, lengths, bear markets tend to be far shorter and investors who have stuck them out have been rewarded for please contact Lee Hayward at Kreston Reeves Financial Planning and then to identify the right time to start increasing portfolio risk in order to benefit when recovery signals are Limited on 0330 124 1399 or email: their perseverance. So blank out the noise, focus on your long-term goals, trust in your adviser and lee.haywardekrestonreeves.com confirmed. Portfolios must be reviewed and rebalanced appropriately in order to hang in there for those 'best' days. reflect market views and to maintain the The content of this article is for information only and does not constitute formal financial advice. KRESTON "REEVES risk mandate. Following advice to remain invested throughout times of market turmoll can Kreston Reeves has offices in Brighton, Chichester, Gatwick, Horsham, Worthing, London and Kent. www.krestonreeves.com PROMOTION The importance of staying invested The COVID-19 pandemic and associated lockdown from governments across the world is unprecedented, yet market volatility and downturns are a constant for every long-term investor, making it important for investors to understand what action they should take during these times /our financial adviser will take be difficult. However, investors should This material is for general information time to understand exactly how much risk you are prepared to take note that history demonstrates that only and does not constitute investment, holding your nerve is often the best way tax, legal or other forms of advice. You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation. take and how much loss it would to ensure that long-term goals remain on track. be practical to sustain, constructing an appropriate portfolio and strategy around this. By diversifying that portfolio & Poor's 500 tndex had a compound to meet the agreed risk mandate, it can be annual return of 6.1%. But if the ten best constructed to focus on your long-term From 2000 to 2019, the Standard days during that period were excluded, goals - whether that is capital growth, an the index would have had just a 24% compound annual return. Excluding the 25 best days, it would have had a -1.0% income or a mixture of both - to weather short-term volatility. Whilst many investors will have experienced significant temporary falls in the values of their portfolios before, such as during the 2008 financial crisis, the situation today carries with it a global compound annual return. Holding your nerve and staying invested is of paramount importance, because one of those 'best' days could be just around the corner. These 'best' days are often grouped together with the 'very bad' days, making it extremely health issue and the concern that oneself and ones loved ones are at genuine risk of falling seriously ill. The economic impact is likely to cast a long shadow. For some, this creates a perfect storm difficult to time a market exit and subsequent re-entry. Over the last 120 years there have been 103 bull market years (where market prices have increased by 20% or more) and just 16 bear market years (where they have decreased by the same degree or more) and whilst these markets will last for varying of emotion that can lead to an instinctive desire to take a flight to safety, exiting investment strategies in favour of cash. Your financial adviser should look If you would like to discuss investing, or an existing investment portfolio through the 'noise' and using their knowledge and experience, reposition investment portfolios to minimise the effect of sustained market falls, with a Chartered Financial Planner, lengths, bear markets tend to be far shorter and investors who have stuck them out have been rewarded for please contact Lee Hayward at Kreston Reeves Financial Planning and then to identify the right time to start increasing portfolio risk in order to benefit when recovery signals are Limited on 0330 124 1399 or email: their perseverance. So blank out the noise, focus on your long-term goals, trust in your adviser and lee.haywardekrestonreeves.com confirmed. Portfolios must be reviewed and rebalanced appropriately in order to hang in there for those 'best' days. reflect market views and to maintain the The content of this article is for information only and does not constitute formal financial advice. KRESTON "REEVES risk mandate. Following advice to remain invested throughout times of market turmoll can Kreston Reeves has offices in Brighton, Chichester, Gatwick, Horsham, Worthing, London and Kent. www.krestonreeves.com