A huge big virtual hug from me to you, yes big virtual hugs are still allowed. 😉
Before I dive into the impact this is having on your investments and what you SHOULD and SHOULD NOT do, I want to say right up front:
- Covid19 is serious and is having and will have fundamental structural impacts on the world as we know it and don’t panic.
- It is the responsibility of each and everyone of us to reduce the speed at which Covid19 spreads. Follow the sensible guidelines being issued by the World Health Organisation, don’t hoard toilet paper and don’t panic.
- If you are able to limit commuting and interacting with people in tight confined spaces, do so and don’t panic.
- If you are able to help others limit their commuting and in person interaction, like your staff, do so. I am fortunate that my Wealth Chef business is already 100% virtual and my team all work virtually. For my other staff that work in person at my home, I have given them a month’s paid leave so they do not have to commute in packed public transport and can look after kids not going to school. And I’m asking them to be sensible, limit movement and contact, and don’t panic.
- Be financially sensible. We do NOT know how long this will go on for so cut your expenses to your most basic living needs. This is a fabulous time to “Squeeze the Juice” and cut out excess to lighten your financial load. And remember, do not panic.
So back to the markets and your investment…
YeeHaa it’s a crazy rodeo out there with lots of bucking and lots of crashing happening.
Whatever way you look at the markets right now, it’s not a pretty sight.
Unless you know how to “look through” the chaos and see the opportunity…
The market’s response to the Covid19 outbreak has certainly inflicted short-term damage on stocks…
I say short term, because that is exactly what it is – Short Term – unless you do something stupid!
Ensuring it is short term for you depends on what you do NOW.
There are three primary responses you could make and each will have a very different outcome for you.
- You can PANIC and SELL your investments and in that simple action you can lock in your losses and turn what is now a “paper-loss” into an actual loss.
- You can FREEZE and stop any regular investing you may have set up, or if you were about to start investing you do nothing. WHilst this is a gazillion times better than response 1 – it’s still a bad option for your investments and financial wellbeing as you will miss out on the massive opportunities this huge global event is offering. YES OPPORTUNITY, which brings me to response #3…
- Keep up (and INCREASE) your regular, consistent investing in a set of diversified index tracker funds that cover different asset classes, different geographic areas, different markets and different industries.
Response #3 is your wealthiest and most financially sound choice right now!
Your Shield Against ANY and ALL Market Turmoil is Your Well Designed Multi-Asset Investment Portfolio.
Research shows that asset diversification and great portfolio design accounts for as much as 90% of a successful portfolio’s return and the thing that cushions you during tumultuous times.
If you haven’t yet watched the investment update I did on the three C’s you can control during times of chaos and the different asset classes you need to be investing in, watch it here:
If you do not yet have a regular investment system in place, where you are investing consistently in a multi-asset portfolio, via low cost index trackers and syndicated investment vehicles, then NOW is the perfect time for you to get it set up and implemented.
I am running an Intensive Investor Bootcamp through April which is a GET IT DONE, experience during which you will
- Determine exactly how much you need to be financially free and the path to get you there;
- Evaluate any investments you currently have and determine if they are good for your wealth, how they fit into your wealth plan and what action to take with them;
- Design your unique multi-asset investment portfolio, aligned to your life stage, financial requirements and timeframe.
- Select the funds you will invest in, in accordance to your multi-asset portfolio, including how much you will invest in each and within which investment account;
- Develop and implement your Freedom Buildup Plan and put it on autopilot.
- Design and develop your Freedom Drawdown Plan (this is HOW you ‘feed” off your investments. This alone is incredibly powerful as most people have NO idea how they should drawdown from their investments in a way that protects them (and their investments) from massive market volatility like we are experiencing now, and how to do it so you have peace of mind and maintain your capital mass so you know you are financially fine for ever!
This means you can connect in and join the Bootcamp from ANYWHERE in the world. All you need is an internet connection.
What better way to use your self-isolation than to get your multi-asset portfolio designed, your funds selected and the whole lot implemented.
This is a limited opportunity, limited to a small group of people so I can work with you directly. In addition to the pre-bootcamp calls and the three bootcamp implementation days…
Yes, you and I will jump on a private call together to wrap it all up and ensure you have this part of your financial well being done and dusted.
And remember, whatever you do – DO NOT PANIC.