How to ride the waves of investment with success

Published: 17/8/2020
By Denplan & Chase de Vere

Until now, the FTSE 100 hasn’t seen this big a drop since the financial crisis in 1987. The coronavirus outbreak has been causing dangerous currents in the stock market, particularly for those trying to second guess the impact of COVID-19, stock market volatility, or even attempting to bet on them. This often ends in a shipwreck. On the other hand, investors who focus on the long-term, say at least five to ten years, tend to happily reach dry land.

Here, we take some important guidance from Chase de Vere who are experts in helping dentists make the best decision for them and their business.

Time in the market, not timing the market

We all have different objectives in life and need different strategies to help achieve them. If you own a mixture of assets - shares, bonds and other investments like property – this can help protect you as an investor over the long term. When one area of your portfolio underperforms, another part should then step-in and protect you.

Always have a plan

Do you have good variety in your portfolio? If so, then definitely hang in there. Chase de Vere say, “You have a strategy in place that reflects your risk tolerance and time horizon, so remain committed. This will help you navigate through periods of uncertainty when some investors are panicking or acting out of fear. Volatility is not all bad, as long as you’re prepared to take advantage of the unique opportunities it brings.

“In volatile markets, it’s perfectly normal for investors to become nervous, question their investment approach and concentrate on the potential for short-term losses over their longer-term investment strategy. Be aware of the psychological effect this type of volatility has on you as an investor, and resist the urge to be reactive.”

Keep at it

It’s important to understand that this movement isn’t all bad for investors like you. Chase de Vere comment, “Some commentators may talk about volatility as detrimental to markets and investors, but fail to mention the opportunities that arise for investors, during periods of market volatility.”

No-one knows how what the markets will do next. The rough ride could be short-lived or could last much longer. “However,” reassures Chase de Vere, “no matter what lies ahead, proper diversification and perseverance over the long term are very important.”

Brave the ups and downs of different market conditions

Chase de Vere finish with some wise advice: “It’s likely that the coronavirus will continue to have an impact on markets over the coming months and even years. However, major events causing markets to fall, particularly in the short term, is something we’ve seen time and time again. And it doesn’t mean that markets won’t recover. History shows again and again that the ups and downs of different types of market conditions are part and parcel of investing.

“The key is to remain calm when stock markets fall. Don't panic. Don't frantically sell. If you can avoid it, don't even log into your investment account. At moments like this, the skills and experience of professional financial advisers come into their own. Not only do we have the experience of dealing with different types of market conditions, but we can also help to take the emotion out of your decisions.”

The power of perseverance

Whether you’re coping just fine and want to keep going in the right direction, or you’re mental stamina is dwindling when it comes to staying positive about your investments, take some tips from Olympic psychologist, Charlie Unwin. Creator of The Thrive Project, he has plenty of tried and tested tips on positive doing, thinking and feeling. Discover his simple principles to help you persevere through the uncertainty many investors are tackling at the moment. 

Life’s full of surprises

Whatever your level of confidence, we’re here to help you make better-informed investment decisions. If you’d like to find out more or require any further information, please contact Chase de Vere here.

Please note:

Information is based on Chase de Vere’s current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Past performance is not a reliable indicator of future performance.

About Chase de Vere

Andrea Sproates has worked in Financial Services for 36 years. 21 years ago Andrea moved to BMA Services providing independent financial advice to both doctors and dentists before progressing to a Management position. She then spent several months managing a team at a specialist healthcare accountancy practice before returning as Head of BMA Services at Chase de Vere twelve years ago. Andrea now heads up both Chase de Vere Medical and Chase de Vere Dental and is widely recognised in the financial services arena as an expert on the NHS pension scheme and pension taxation legislation. 

Phil Bower has worked in management roles within Financial Services for over 25 years and has been a specialist in providing Financial Advice to Doctors and Dentists since 2004. Phil is a level 4 qualified Financial Adviser and has a passion for providing a high level of service, technical knowledge and financial advice to the Dental and Medical Profession. This passion led him to join Chase de Vere in early 2016 to work in partnership with the BMA as their Business Development Manager.