We’ve continued to see significant volatility across global indices as the coronavirus pandemic continues. On Friday, markets fell based on investor concerns around the long term economic impact and the energy sector. However, today has seen another sharp rally as hopes rise that the outbreak is slowing in major European countries such as France, Germany, Italy and Spain. There were further worries though about the Saudis pushing back talks with Russia over oil supply until Thursday. They are, though, talking about talking and this is a step in the right direction.
The consensus is that investors should continue to sit tight and see this through. No one likes to see portfolios falling in value but cashing in turns a paper loss into a real one. Investment managers are adding risk to portfolios as and when they see opportunity and when the market does recover, it will be fast. Stock markets always look forward and it’s hoped that all of the bad news has been factored in. Obviously, should we see another coronavirus outbreak, that may change but for now at least, optimism over falling infection rates remains.
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