You’ll have noticed in the news the significant volatility and reductions in markets around the world as concerns about the effect of COVID-19 took hold, and continues to do so. No-one can be sure, but given the uncertainties around how the virus will spread and the impact it will have, it seems likely that we should anticipate that this market volatility will continue.
We completely understand that the economic impacts and the consequences seen in the markets leave some people very worried about their investments, and what to do. It’s quite normal for stock markets to fall but obviously we’ve seen a marked difference in a short space of time.
It’s important to bear in mind that we think of long-term investments as being ten years, and in a lot of cases much longer than that. Even in these extraordinary times taking a longer-term view remains a sensible perspective to take, especially as spur-of-the moment choices, like taking money out, could carry its own risks.
Some of our products also benefit from valuable guarantees, and our with-profits policies can benefit from smoothing which means that the impact of market volatility is reduced. Please check out your original product information, or your latest annual statement to see if these features apply to your policy.