It’s been another rocky period for investors, with both global stock and bond markets down during the first quarter of 2022. Inflation is being stoked ever higher and there could be several interest rate rises in store on top of recent hikes. As the Ukraine crisis rolls into its second month, that only adds to the worry and uncertainty for many.
As we mentioned in a recent article though, this is all part-and-parcel of investing. If you’re thinking about getting out of the markets while things are bumpy, and then jumping back in once things have calmed down, you might find you’ve been left behind by rapid recoveries. They usually come without notice after a period of volatility and mean investors trying to ‘time’ the markets could end up worse off than had they done nothing.
Our advice is, as it always has been, to focus on the long-term and stay invested come rain or shine. Global stock and bond markets will sometimes cause short-term disappointment but on the whole they are resilient and, given enough time, have always recovered.