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Your Investment Portfolio in a Pandemic: Global Update Piece

Coronavirus infection rates remain at a rising level, something the UK government is unwilling to tolerate. With the implementation of the three-tier lockdown system, and the intermittent closing of bars and restaurants, the opinions of the UK population seem to rest in two opposing camps:

  1. Those of the opinion that the population should retain a sense of normality and let individuals decide the level of risk they wish to take. This includes encouragement of using the dedicated Nightingale hospitals, which insofar have been used sparingly. This is a compelling argument when faced with the devastating sociological effects of lockdowns on the hospitality sector, as well as the population’s general mental health.
  2. Those of the opinion that we should continue to protect the NHS (and the larger picture of all essential services becoming affected by higher infection rates), through ‘circuit breaker’ lockdowns. Could the emergency services, care homes and schools deal with infection rates that result in scores of personnel being off sick?

You may, like many other people up and down the country, be clearly on one side of the above debate. Perhaps we all need to remember that whichever side of the fence we sit on, ultimately people believe in what they think is best for the wider society.

Trying to make investment decisions currently is increasingly fraught with problems, not least the immediate future of the coronavirus pandemic. Current economic recovery is fragile, and it is clear that we will see higher unemployment and lower growth for longer, where lower household incomes and spending will be a result. It is therefore important, now more than ever, to have key aspects of portfolios examined for…

  1. Diversification across geographical areas
  2. Diversification across asset classes
  3. Seizing opportunities that are presenting themselves in the pandemic
  4. Taking risk off the table where appropriate
  5. Maintaining a long-term view

As we have reiterated across this recent period, we expect to see volatility in investments both now and moving forwards. Investing in the right sectors will allow returns both now and moving forward, using fund managers that are skilled in assessing the current market. We will continue to monitor the markets intensively, considering the ever-changing situation, and we wish to reiterate to our clients that monitoring this situation is of the upmost importance and priority for us at Greenfields.

If you are concerned about the current state of your investments, or are interested in our experts examining your portfolio, book a meeting with us today on 01258 857101, or email us at ian@greenfields.biz.

Written by Greenfields Financial Management Ltd.

This article is for information only and should not be treated as individual advice. No action should be taken in respect of this article without independent financial advice. This information represents the opinion of Greenfields Financial Management Ltd. only.

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