How is the coronavirus affecting my investment?

23rd March 2020

Coronavirus and your investments

If you’ve been checking your pensions and investments over the past few weeks, you may have noticed a change in their values. This is because global markets have been experiencing a downturn due to the outbreak of coronavirus and the effect it will have on the economy.

These falls in the markets are caused by business-as-usual being disrupted on a global scale. The impact that this will have on the economy has a knock-on effect for the earnings and share prices of companies across the world. The longer the coronavirus outbreak lasts, and the more preventative measures are taken, then the larger the impact would be.

At the moment the full scale of coronavirus is still unknown, and it’s uncertain how effective the containment measures will be or how long this will last. This uncertainty has kept financial markets continuing to go down, which then affects your pension and any investments you have.

It’s definitely a challenging time, in so many ways, for everyone. But in terms of investing, here are some points to consider.

A long-term investment

It is important to view your pension as a long-term investment. We understand it can be difficult seeing your pension and investment values drop. However, we’ve seen through previous declines (such as the Global Financial Crisis) that during periods of uncertainty the stock market will drop, but it has also recovered.

It’s difficult to predict what will happen with the coronavirus outbreak, and past performance can’t be relied on to predict the future, but taking a longer-term view over your investments can allow your funds to grow over time.

As long-term investors on behalf of customers, we know that uncertainty and short-term volatility – dramatic changes in share values – can be worrying, but we keep an investment view of five to ten years or longer.

If you want to know what you are invested in, and how current conditions are affecting your account, please speak to your financial adviser if you have one. If you don’t have one, you can find one here. (Please note, financial advisers charge for any advice provided.)

Finally, to learn more about investing during times of volatility, watch our films.

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