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Managing your investments in uncertain times

Coronavirus has had a major impact on the global economy and led to volatility in stock markets across the world.

It can be unnerving to see the value of your investments fall and you may be wondering what to do next. Find guidance on things to keep in mind when markets fall.

A lesson from history?

There have been a number of market shocks over the years. This graph shows some of the more memorable events since ‘Black Monday’ in 1987, the impact each had on the UK stock market and the length of time it took markets to recover.

FTSE All Share TR in GB 01/01/87 to 31/07/20 – Pricing spread Bid to Bid Source: FE Fundinfo 2020

  31/7/2019 to 31/7/2020 31/7/2018 to 31/7/2019

31/7/2017
to 31/7/2018

31/7/2016 to 31/7/2017 31/7/2015 to 31/7/2016
FTSE All share Index -17.8% 1.3% 9.2% 14.9% 3.8%

Discrete annualised performance. Bid to bid, income reinvested. Source: FE Analytics, August 2020

Black Monday 1987: Black Monday in October 1987 led to a 20% fall in the UK stock market over a short period.

Global financial crisis 2008: Concerns over the global banking system required financial interventions from Governments similar to those we are seeing at the moment, leading to significant market falls 

Brexit: The vote to leave the European Union and specific updates on negotiations caused dramatic reaction from UK markets. 

Market shocks are often triggered by specific events and the uncertainty they create.  Once the situation becomes more certain, confidence often returns and markets may recover.

It’s important to remember, the value of investments can fall and you may get back less than invested.

One of the benefits of investing monthly is that when markets fall, your monthly investment buys more units or shares in your plan and when markets rise you buy less. This averages out over time and can help reduce risk. The investments you make when the market is at its lowest will be the most valuable in the event of a market recovery.

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Most of the investment plans, including ISAs and Pensions offered by NFU Mutual allow you to suspend your regular payments and start them again when your'e ready. To find out about your specific plan(s) please email us or complete this form and we’ll talk to you about your options.    

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Identifying the top and bottom of the market is notoriously difficult. If you’re investing for a period of five to ten years or more, holding a diversified portfolio that gives you exposure to shares, bonds, property and cash can help reduce the impact of market volatility as falls in one part of your portfolio may be offset by positive performance in another. 

 

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It’s simple, you complete a form on our website and we will send you links and user details so you can log on to NFU Mutual My Investments, It’s a great way to see your correspondence and valuations online, visit to see how it works.

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Yes, our customer services teams are on hand over the phone and via email to ensure that your requests will be dealt with. You can email us.

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If you know your Financial Adviser, please do contact them to discuss your concerns. Alternatively if you are unable to reach them, please complete the form or email us and one of our customer service teams will be in touch shortly.

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