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Coronavirus updates, Keep Calm and Carry On, week 8…

It is now 8 weeks since our first blog, launched on the eve of the UK being locked down due to Coronavirus (Covid-19). We launched our blog to provide regular and useful insights from our network of wealth managers and beyond, for all those who were understandably anxious about their financial wellbeing. Whilst it is fair to say that we have passed the ‘panic stage’, many are still extremely anxious.

And with anxiety brings irrational behaviour! So how can we save ourselves from ourselves, and ultimately make it more likely that we achieve our investment objectives? Firstly, it is important to recognise and accept the biases we all have. We also need to comprehend that important decisions should take time and that we should deliberately seek impartial views that challenge our own. Finally, a robust, objective and structured process is vital to minimising biases. JM Finn have written an interesting insight “Rationalising the Irrational”. Read here

For the benefit of those new to our blog, The Wealth Consultant is a free to use digital wealth platform helping clients to achieve financial Peace of Mind, a tall order in the current environment. However, it is at unprecedented times like these, and as some may argue not seen since WW2, that we must keep our head, or risk losing our mind; we must “Keep Calm and Carry On”, in so far as that is possible.

In our first blog we highlighted Charles Stanley’s three economic scenarios as to how things might play out. As the government starts easing some restrictions to try and get people back to work, the danger of a second spike in Covid-19 infections is very real. This means it will take some time. On both sides of the Atlantic progress in getting back to work is slow and patchy. This is not going to be a sharp V-shaped recovery from the second quarter plunge in employment and output, as detailed in their latest insight “Tiptoeing back to work”. Read here

Over the past week I have been speaking to several wealth managers in our network to get a feeling for how they, and their clients, have fared over the past two months. Fortunately, many went into this crisis with increased levels of cash, having already reduced equity exposure, and where able to take advantage of the market draw down. Others have been arbitraging pricing anomalies of unit and investment trust managed by the same manager, a tried and tested strategy that often rewards those who understand the benefits of investment trust. These examples demonstrate the reason for having your wealth managed professionally.

The Wealth Consultant is here to put you in touch with the right wealth manager to meet your needs, and to empower you to take ownership of your financial wellbeing. Our wealth manager introduction service is free of charge. Many people, however, do not know where to start. If this sounds like you, please read our guide “Getting to grips with wealth management”. 

For those who may be ready to speak to a wealth manager, or have fared less well over recent months and may be looking for a change in wealth manager, you can Get Started by completing 10 short and simple questions. The Wealth Consultant will follow up a with a phone call, within 24hrs, to clarify your details, and to discuss your matched wealth managers with you, before arranging introductory calls for you with each wealth manager.

The world of investment management can be complex, but there are certain investing principles that can aid any aspirational investor. Whether you have £1,000 or £1 million to invest, Nutmeg have put together a useful guide that will stand you in good stead “The six principles of investing everyone should know”. Read here

Thank you for reading, I hope you found this helpful. Please do get in touch if you would like to find out more or to book a consultation.

Keep well, Keep Calm and Carry On.