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Q1 Stock Market Update

Stock Market Update – Q1

Stock markets have endured a very volatile start to the year with most indexes suffering significant losses in what points to being a difficult and challenging year for investors.

Concerns are predicated on China experiencing a much harder landing that what is expected and concerns over the strength of US recovery both resulting in concerns that global economic growth will be lower than anticipated. Since the beginning of the year this has resulted in large sell offs in the market.

Please see below for a commentary of current events from Quilter Cheviot along with an outlook for the year ahead.

https://www.quiltercheviot.com/latest-news/dont-panic-captain-mandarin/

So what does all this mean for investors?

Stock market volatility such as that experienced in 2008 and again in 2011 should not be a cause of significant concern for a long term investor. This is because history indicates that like in the period after 2008 and 2011 markets recover and investors who remained invested benefit from the uplift.

Most long term investors will have multi asset portfolios so they do not have complete exposure to equites. Therefore, at this moment in time we do not advise that investors who have actively managed multi asset portfolios make any changes.

As with previous dips in the markets the current volatility will present opportunities for investors who wish to enter the market. However, for now we would recommend that such investor waits until current volatility levels off and a much clearer pattern emerges.

Warning: Past performance is not a reliable guide to future performance. The material is not intended to provide advice and is provided for general information purposes only.