It may seem longer, but it is now 1 month since the government informed us all to Stay at Home, Protect the NHS and Save Lives.
So what has happened to markets in this period? It may be surprising to note that global stock markets have rallied strongly, and whilst they are still a lot lower than where they were at the start of the year, it is a significant bounce.
The chart below shows the FTSE 100 Index (the top 100 companies in the UK) since 23rd March and highlights why staying invested during times of market stress is important.
As you can see, the FTSE 100 Index has returned over 12% in the period, however our view is that markets will remain volatile for a while. The graph does, however, help to highlight the importance of staying invested so that you benefit from the upswings when they happen.
Looking forward, everyone is hoping that the terrible figures of deaths begin to reduce and that life can start to return to some form of normality. We are already seeing other European countries relaxing their restrictions and hopefully the UK will follow suit as soon as is safe to do so. This will bring a “feelgood factor”, lifting everybody’s spirits and can help markets recover further.
All our advisers remain available to contact if you have any concerns or wish to review your financial plans. We appreciate that this is a very tough time and we are here to help.
Also, for those of you that are key workers, or on the frontline in the NHS, we salute you and will be in our thoughts during the Thursday night clap.
The FSWM Team