Right now is a very worrying time. We have seen all equity markets experience significant falls, although in the past ten days or so, things have improved.
Volatility will continue. This means we should expect to see large daily movements – up and down.
Over the short term there is significant risk that we may see further falls. However, in the long term it is highly likely that the markets will produce growth and recover. There is however, no guarantee on this.
Some people believe that the markets will fall heavily and for the long term. That is their view. Others have different views.
Standard messages need to be remembered:
Invest for long term
Have adequate short term cash positions for day to day needs
The higher the risk rating, the greater the volatility and range of outcomes (positive and negative)
Selling diversified investments into cash after a period of loss is probably the worst thing to do.
Maintain diversification of holdings and asset types
Stay Calm. Yes, we have not seen this before but we have seen markets fall before.