How is the crisis in Ukraine affecting investments?
It is difficult not to be shocked, horrified and angered in equal measure with the recent events in Ukraine.
Clearly, there is huge uncertainty and fear as to what may happen next.
With all of this in mind, we wanted to provide you with some background and reassurance regarding the direct financial implications for investors.
We understand that the temptation during a time like this is to move your money into a “safe” asset like cash. However, this decision forces you to make two correct timing decisions.
The first is when to come out of the market
The second is when to get back in.
Thinking that you can consistently get these two decisions right ignores everything we have learnt from history. Please avoid the temptation to try this.
The admission price to long term wealth through stock marketing investing is possessing the courage to do nothing when your natural instincts are telling you to run.
No one knows where the market is heading, no one.
A few people will make predictions that may turn out to be correct but it’s impossible to know with foresight who they are and whether it was luck or judgment.
There will be many more market declines over the course of your lifetime. These will be temporary declines. Behave correctly and the permanent returns are yours. The stock market has proven that it advances after all shocking world events.
We’re not changing our families’ long term investment portfolios, and neither should you.