I’M going to begin by stating the blatantly obvious…

Investors have had an immense amount to deal with in recent months and years.

From political upheaval here in the UK – as well as in the US – to soaring inflation and a once-in-a-century pandemic to the horrific Russian war in Ukraine, it’s been one of the toughest periods in memory.

In the face of such forbidding headlines and events, it’s perhaps no surprise that some investors might be feeling edgy.

But one of the key things I’ve learned from many years working in financial services is that markets go up as well and down.

And that was particularly apparent last month.

The FTSE-100 index of leading shares rose by four per cent in July to close the month at 7,423, while the pound held up against the dollar.

Similarly, Germany’s DAX index went up by five per cent last month, ending at 13,484, and the CAC 40 Index in France gained nine per cent to end at 6,448.

These positives have happened despite the justified concerns about just how high inflation could now climb and the general doom and gloom.

So, what does everything that’s unravelling mean for you as an investor?

Well, it’s a timely reminder that you shouldn’t have a short-term outlook on your investments and get overly concerned at the first sight of trouble.

Financial waters can be choppy, and they certainly are right now, but calmer seas will lie ahead, and it important to adopt the correct co-ordinates and stick to the plan.

Most investments are a long-term proposition, and reflect your attitude to risk, and also your ability for loss.

So impulsive actions go against the basic principles of investing in the investment markets and what you want to achieve in the longer term.

When the investment markets fall, there is an opportunity to buy into a fund at a better unit price, which over time could recover and increase in value.

This is technically known as ‘pound cost averaging’, and can be very beneficial to savers over the longer term.

At times when a fund value goes down, it also helps the fund purchase stock at a reduced price into their funds.

Once again, this can have a longer-term benefit to the value of a fund.

As I said at the beginning, investment markets can go up as well and down, so diversifying your portfolio across different asset classes is vital.

If you are concerned about the impact of the toughening economic climate on your investments, a better course of action would be to review how they’re set up, ensure that your financial plan remains robust, and meets your current and future needs.

The entire team at Future Life Wealth Management remains at your disposal if you have any concerns or queries about the impact of what’s unravelling economically - and the impact this will have on your investments.

So, no matter how grim the headlines and the associated noise might be, don’t panic… and be certain to stick to your investment strategy - and keep calm and carry on.

If you need advice on managing your investments, Future Life Wealth Management is here to help. So please don’t hesitate to get in touch with any questions you may have HERE.