Keep calm and carry on investing
Why holding your nerve when the going gets tough could pay off in the long term.
2 min read
Cashing in when markets fall could mean missing out when they bounce back.
Past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.
Markets moving upwards for now
The post-Christmas upswing seems to be continuing into the new year. The FTSE 100 is up 3.6% so far in 2019, the S&P 500 is up 7.9% and MSCI Europe is up 6.3%, as at 31 January. In fact, the US has seen the best January returns since 1987.
We still believe markets will continue to have their ups and downs this year and that challenges remain – we are in a period of slowing growth and political uncertainty around the world. But as we make clear in our 2019 investment outlook, Children of the Revolution, we still see a growing global economy and opportunities for investors.
There is a lot happening in the world to make investors smile, after all. The US Federal Reserve announced this week that they are putting rate rises on hold for now and looking at “flexible options” for scaling back bond repurchases. This will reassure investors concerned about the pace of monetary tightening in the US.
In the meantime, most US companies which have reported their latest financial performance have beaten expectations. And trade talks between the US and China appear to be making progress.
The current climate does serve as a reminder, however, that the value of investments and the income from them can fall as well as rise, and you may not recover the amount of your original investment. It’s also always worth remembering that past performance shouldn’t be taken as a guide to future performance.
Become A Client
When you become a client of Coutts, you will be part of an exclusive network.
About Coutts Investments
With unstinting focus on client objectives and capital preservation, Coutts Investments provide high-touch investment expertise that centres on diversified solutions and a service-led approach to portfolio management. Our investment process is as disciplined as it is creative – ensuring tailored solutions with robust results.Discover More About Coutts Investments