Crucially important advice to investors amid market turmoil

A LEADING financial advisor has urged investors to seek advice on their portfolios as turmoil continues to grip global financial markets.

Rachael Bell and her team have spent the last two weeks individually contacting clients to discuss their investments in light of the coronavirus pandemic.

And while the advice for a majority has been to sit tight, she says introducing a dialogue with them has proven to be a powerful tool as they look for reassurance amid significant market volatility.

From left to right: Pam Brown, Rachael Bell, Gemma Brodie and Abigail O'Brien, who are all team members at Rachael Bell Wealth Management.

Rachael, who is the principal of Rachael Bell Wealth Management, said: “In terms of specifics, there is no one single piece of advice that can be given to individuals with investments.

“They will have different motivations and be investing towards a variety of outcomes or goals. The one piece of advice which does transcend all portfolios and individuals, however, is to seek good, clear and balanced advice.

“Investments are not at the forefront of everyone’s mind at the moment; personal health and that of family, friends and members of the wider community, is of course priority number one.

“But we have had enough conversations to understand there is significant concern relating to pensions and personal wealth.

“These are tough times for investors, and markets are likely to remain volatile in the weeks and months to come as uncertainty persists over the impact of the coronavirus on the global economy and public health. Difficult though it can be, it’s important to sit tight and keep sight of long-term objectives.”

It has been a bruising few weeks for investors as concerns about the spread of coronavirus have swept through financial markets.

March 9 saw the biggest one-day drop since the financial crisis, as fears of an oil price war compounded those about COVID-19.

Then on Thursday March 12, the US travel ban triggered the biggest daily fall since October 1987, and took leading indices into freefall (at least temporarily), having dropped 20 per cent from previous highs. The UK’s leading price index, the FTSE100, has suffered a tumultuous few weeks, falling from near all time highs in January to sub-5000 points last week. It has this week staged a mini recovery.

In order to keep clients fully updated, Rachael’s practice has now implemented a full video conferencing facility to allow virtual face to face meetings.

“We are here to help and support our clients during these extremely challenging times,” she said.

“We will be sending everyone a letter which provides further detail and reassurances regarding the stability and security of their investments.

“It is worth commenting on the enormous cost of the rescue packages put in place, which will almost certainly result in ultra-low yields and official rates near zero for the next decade.

“In the years to come, we expect to be looking back at this current period as the best entry point for many years. So, we would urge investors not to panic from here.

“In our experience, long term investors such as pension funds will be looking at today’s bond yields very positively. Shorter-term investors will not be far behind.”