What should investors do when the stock market is in “turmoil” and recession looms?

On Wednesday 14 August 2019, the US stock marker suffered its biggest one day fall since October and the Dow Jones had its sixth worst day in history. Markets recovered by the end of the week when President Trump deferred a tariff increase on Chinese imports.

As markets reel and recession appears to be around the corner, The Times interviewed leading experts and economists working for fund managers or insurance companies. These are the people who control billions of pounds worth of investments on behalf of millions of savers and investors in pooled managed funds, from pension funds to unit trusts (mutual funds).

Not one expert recommended getting out of the market, even though some admitted that the price of shares could fall.

Helena Morrisey of Legal and General advised investors to “stay calm”, which is always easier when it’s not your money at risk?

She continued:

“Private investors should resist the temptation to cash in their portfolios. By selling in anticipation of possible losses, investors may miss out on the gains that often follow declines in share prices”.

In this volatile market, what would you rather do: miss out on a potential gain, or avoid a potential loss? I know which option I’d choose.

James Thomson, the manager of the Rathbone Global Opportunities Fund, astonishingly says:

“I will be sticking with my long-term strategy and not be distracted by market turmoil. I will be using and market dips to top-up some of the positions in my portfolio”.

This is bullshit.

Who do they think they’re kidding?

Naturally, they want you to “stay invested” in their funds, because that’s how they get paid – they earn billions from management fees and fund charges on your money.

My advice is simple.

Firstly, take independent financial advice if your adviser tells you to “stay calm” and “stay invested”, find another adviser.

Secondly, take a course and learn how to invest in the stock market yourself, or invest in something else you understand, rather than leaving it to highly-paid fund managers, most of whom do not even beat the market average.

If you would like to learn more about investing in your spare time, email me at charles@charleskelly.net or message me on our Money Tips Facebook Community

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

What should investors do when the stock market is in &ldquo;turmoil&rdquo; and recession looms?
On Wednesday 14 August 2019, the US stock marker suffered its biggest one day fall since October and the Dow Jones had its sixth worst day in history. Markets recovered by the end of the week when President Trump deferred a tariff increase on Chinese imports.
As markets reel and recession appears to be around the corner, The Times interviewed leading experts and economists working for fund managers or insurance companies. These are the people who control billions of pounds worth of investments on behalf of millions of savers and investors in pooled managed funds, from pension funds to unit trusts (mutual funds).
Not one expert recommended getting out of the market, even though some admitted that the price of shares could fall.
Helena Morrisey of Legal and General advised investors to &ldquo;stay calm&rdquo;, which is always easier when it&rsquo;s not your money at risk?
She continued:
&ldquo;Private investors should resist the temptation to cash in their portfolios. By selling in anticipation of possible losses, investors may miss out on the gains that often follow declines in share prices&rdquo;.
In this volatile market, what would you rather do: miss out on a potential gain, or avoid a potential loss? I know which option I&rsquo;d choose.
James Thomson, the manager of the Rathbone Global Opportunities Fund, astonishingly says:
&ldquo;I will be sticking with my long-term strategy and not be distracted by market turmoil. I will be using and market dips to top-up some of the positions in my portfolio&rdquo;.
This is bullshit.
Who do they think they&rsquo;re kidding?
Naturally, they want you to &ldquo;stay invested&rdquo; in their funds, because that&rsquo;s how they get paid &ndash; they earn billions from management fees and fund charges on your money.
My advice is simple.
Firstly, take independent financial advice if your adviser tells you to &ldquo;stay calm&rdquo; and &ldquo;stay invested&rdquo;, find another adviser.
Secondly, take a course and learn how to invest in the stock market yourself, or invest in something else you understand, rather than leaving it to highly-paid fund managers, most of whom do not even beat the market average.
If you would like to learn more about investing in your spare time, email me at <a href="mailto:charles@charleskelly.net">charles@charleskelly.net</a> or message me on our Money Tips Facebook Community
There are more examples and practical steps to getting rich and being happy in my book, <a href="http://bit.ly/2MoneyBook">Yes, money can buy happiness</a>, I cover the 3 R&rsquo;s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon <a href="http://bit.ly/2MoneyBook">http://bit.ly/2MoneyBook</a>.

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.  Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.  Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.   For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.&nbsp; Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.&nbsp; Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation. &nbsp; For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips Podcast

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. 

Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business. 

Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.  

For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

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