Remember the heady days of 2019? With the UK FTSE 100 up 12%, the US S&P 500 up 28% and China’s CSI 300 up 36%, it was the biggest jump in global stocks since 2009.
Just three years later and the economic outlook is very different. A global pandemic, political upheaval in the US and the UK, the invasion of Ukraine by Russia, plus soaring inflation and energy prices have led savers to become cautious about investing.
So how can you weather the current economic uncertainty?
Actively review your portfolio
Markets move quickly in this environment, so it’s vital to devote time to regularly reviewing your portfolio to make sure you’re investing with the right fund managers. Adjustments may need to be made to how you want to allocate the assets in your portfolio to help spread investment risk.
Find the right fund managers
There are active and passive fund management techniques. Active fund management finds good value companies that the fund manager believes will outperform the market over time. Passive fund managers invest in every company in an index so shares will rise and fall roughly in line with that index.
Find those fund managers who put the work in to looking for good value stocks and choose the right balance of those funds in your portfolio to make sure you can meet your long-term goals.
Look for value in the long term
Not all companies will fail. Some will come through this turbulence bruised and battered and some will even thrive if they provide a service, commodity or technology that’s particularly needed at this time. Carefully research companies in the sectors you think will grow over the next ten years and buy at a price you think is fair.
Talk to the experts
If all this sounds complicated and time-consuming, that’s because it is. And it’s why you entrust your investments to us. Omnium’s investment proposition includes seven growth model portfolios and two income model portfolios available in both the discretionary and advisory formats, as well as a selection of multi-manager portfolios and tracker funds. All the portfolios are intended as suitable for medium to long-term investment time horizons.
Remember why you invested in the first place ]
When you invested with Omnium, we discussed your long-term goals and devised an investment strategy to work towards them. Reacting to short-term falls in the market by disinvesting will only derail your long-term plans. If we look back at Black Wednesday in 1992, the Asian Debt Crisis of 1998, the bursting of the dotcom bubble, 9/11, the 2007 Global Financial Crisis, they’re all now small blips in the upward trend of global markets.
Get in touch
We’ll continue to assess the suitability of the investment managers we recommend and make appropriate changes to your portfolio where necessary. If you’re worried about your current investments or you’d like to talk to one of us about your personal circumstances, please give us a call. We are very happy to talk things through with you.