Never has the need to search for light seemed stronger than it has these past few months. Perhaps unexpectedly, the world as we know it has been plunged into disarray; everyday news now being filled with economic markets crashes, business collapses and society as we know it, becoming distant. It feels we’re living a through a time of great upheaval.
However, it’s not all doom and gloom. Despite the many wars, and previous financial crisis’, over the last 20 years, the stock market achieved a positive return in 15 of those years. Because over time, our economies regrow, companies become profitable again, employees become more efficient, people more productive, populations build back up, and technology leads to new innovations. With this in mind, we wanted to bring to light some of the positives of investing, and how we can all grow out of these dark days.
You’re in the market
As they say, you’ve got to be in it to win it. You’re investing each week, or each month, or however regularly. You’re getting something put away. You’ll buy low, you’ll buy high and everything in between, but with regular investing, no matter how bad the market gets, you may have a higher probability of gaining an average return. With i-stock, you can put in your money at any time, 24/7.
You can benefit in the long-term
Although it may be tempting to focus on the negatives and the drops in the stock market, it’s also important to remember that they can rise again over time, despite these setbacks. By holding out, the odds tend to increase on making a gain as opposed to investing for a day and pulling out. With an i-stock account, we aim to bring you something that will manage your money effectively over the long term, changing the way we all think about investing.
Things are better than your emotions think
Granted, the situation we find ourselves living through absolutely, is bad.But that doesn’t mean it’s going to be bad forever. At i-stock, we know that 78% of adults in the UK would rather be “safe than sorry” with their money*, and that’s why as soon as there is any negative fluctuation, it’s a battle of fight or flight in the investment world. Rationally we all want to buy low and sell high, but when we’re in this state, our emotions often lead us to sell and buy, perhaps irrationally. This in turn, can cause markets to tumble and rise. Now, why would we do that?The media outlooks also perhaps drive you to act immediately on your initial survival, but with the revolutionary list of investment fund options available through i-stock, you may find yourself feeling that little bit calmer.
It feels unpredictable, maybe it isn’t
It’s cheesy, but “if you want rainbows, you’ve got to put up with rain” pretty much hits the nail on the head. It’s important to remember that every bear market in history, has been followed by a bull market, so the general pattern of the markets can help to reassure.
We’ve got you covered
As a result of the huge financial stimulus provided from Government, liquidity has improved noticeably in the markets. At i-stock, managing volatility is our bread and butter, and during this time, our main aim has been to keep improving liquidity in our portfolio profiles. The daily access of ETFs fund is something that we’ve always appreciated. Our protection portfolio provides a minimum 90% protection on your investments highest ever value, and our disciplined approach to good fund management has helped us effectively navigate the last few weeks. Our decision to improve the liquidity across our portfolios provides insurance and protection against the worst of any downside outcome.
With all this in mind, perhaps maintaining long-term financial goals provides us with some focus.
With any luck , the weather should improve, the spread of COVID-19 should be slowed, and hospitals may soon be able to run smoothly once more. Perhaps we will soon discover something resembling normal, as we start to repair our economy and our society. This isn’t the first time that stocks have slumped, and it won’t be the last time it happens to you as an investor. Remember, for the last 20 years, the stock market has been the best place for the longer-term investor to build their wealth, and it will recover. We don’t know how long it will take. But history tells us: this too shall pass.
* Source: The financial lives of consumers across the UK. Key findings from the FCA’s Financial Lives: FCA. (2017)