How sticking with longer-term, growth investments benefits you when inflation is high
It’s important to think about managing your investments for the long-term, rather than any short-term movements, because history shows us that in the long run returns have heavily outweighed any short-term declines. This means any switch to hold more short-term, conservative investments like cash or other assets means your money may not grow at a faster rate than inflation (we call this ‘inflationary risk’).
Your Adviser/Investment Manager is focused on the long-term direction of the market and what that means for your investments, including if this is an optimal time to increase your investments and if you should diversify more across asset classes.
Source: Schroders - https://www.schroders.com/en-gb/uk/individual/insights/the-data-that-shows-a-case-for-long-term-investing/
How we can help if your investments are in drawdown and your standard of living is getting more expensive
When there is a change in the value of your investments, or a change in your life circumstances, speaking to one of our Investment Managers/Financial Planners will give you a well informed chance to respond.
They can help you consider how much you are drawing down and how much you might need in the current market conditions. Then they can help you adjust how your investments are allocated to take account of the rising costs of food and energy, so that you can maintain your standard of living.
Here’s why the recent changes in the UK’s monetary policy may affect your investments
Monetary policies are implemented by the Bank of England (BoE) In an attempt to stabilise the price of goods and services, as well as achieve goals including growth and employment.
The Bank will use this tool differently depending on their objective, meaning this can have a direct impact on the market and different asset classes.
In 2022, to try and reduce the impact of inflation and stabilise the economy, the BoE switched from a highly expansionary to a contractionary monetary policy. The action, which resulted in rapid increases in interest rates, has impacted market sentiment, causing equity and bond prices to drop.
As interest rates have risen to exceptionally high levels, our Investment Managers and Financial Planners are aware of the implications of this on equities, bonds, and other currencies. So, if you have any questions, please contact your Investment Manager or Adviser to learn more about how they are responding to this time in the markets.
