My pension and global market fluctuations

There’s a good deal of nervousness about investment right now. In a climate of political and ecological uncertainty, during a global pandemic, a lot of us feel worried about the future. At Macdonald Wealth, a lot of my clients are anxious. They’re worried about the impact the pandemic will have on the stock market, and what that means for their pension.

Before I start, I must say that I can’t offer any concrete advice on whether investments will go up or down. There are no guarantees on expectations of return.*

I have followed the markets over the last few months, and can only relay information as it happens. At Macdonald Wealth, we can’t guarantee returns.* But that doesn’t stop us from being aware of what is happening in global markets or reacting when things need to change.

‘Don’t look now’

I understand that some of us would rather ‘not look’ during times of gloom and doom. Sometimes, that’s a survival mechanism. In March 2020, the FTSE dropped over 30%. If you invested your money around that time, your cash would have lost 30% of its value. That is very dispiriting.

Even during times of downturn, it’s important to know the markets. We don’t want you to bury your head in the sand when it comes to your money. 

If you’re the sort of person who doesn’t look overly closely at your investments, now is the time to begin understanding it better. We don’t want you to make rash decisions, but by knowing the full extent of what is happening, you’ll be well informed.

You need to understand that changes and volatility will happen in investments. That’s not something to shy away from. If, at any given moment in time, your investments decrease in value, this should not come as a surprise to you. Understand before you invest, that drops do happen, as well as increases.

A time to act

An informed client has more rationale to shape their actions. Some of my clients have come out of the market this year. Some clients have stayed invested. If you find yourself unable to sleep at night, because you’re worried about your money, then it could be a time to act for you.

Those of you who stay with your investments have ridden out the storm. Again, this strategy doesn’t guarantee a return but also doesn’t rule out exposure to potential losses in the future, should that happen. 

What you do with your money is ultimately your choice based on your unique circumstances. I would only urge clients to make informed decisions, use the appropriate information and act according to your own level of risk tolerance. 

We can’t predict the future

I can’t predict what will happen to future markets, nor would I try to. But I do enjoy studying market patterns.. This tells me that global markets do fluctuate. It’s normal to feel concerned, but this is no reason to ignore the market information around us.

When it comes to investments and pensions, there are no guarantees.* All we can do is arm ourselves with information, and act when the time is right for us.


*The value of your investment can go up as well as down, you may get back less than you originally invested. Circumstances are subject to change. 

Performance from the past or yields quoted should not be considered as reliable indicators of returns. This communication is for general information only and is not intended to be individual advice.