Investing during the pandemic

As the entire globe tackles the threat of coronavirus (COVID-19), we take a look at what this could mean in the world of investments.

A new, virtual world

It’s June 2020 and, like most of the entire globe, we’re all giving it our best shot at getting on with our everyday lives within the confinement of our own homes - and that’s very much the case here at a virtual OneFamily HQ.

Brighter days are no doubt ahead, but in these moments of challenge we remain focussed on looking after the money entrusted to us by you, our customer.

What has been the impact?

As you’re probably aware, a number of our products invest in stocks and shares.  Whilst it’s probably unsurprising to hear that COVID-19 has shaken up some of the markets these invest into, the direct result is that we have seen some of the stock market values reduce, and investments fall in value. For many, this may trigger the ringing of alarm bells and the inner-stock market trader panicking us to ‘sell, sell, sell’… but should they be telling us to ‘buy, buy, buy’ instead?

Taking the positive view

As we sit in the middle of a global pandemic, each of us remains tuned into the media, eagerly awaiting news that shows the world is through the worst of it and on the road to recovery. Naturally, as the world starts to recover, the stock markets should eventually follow.

A range of our products invest in stocks and shares

For many people this could be their ideal entrance into the world of investments. With global indexes more than 20% lower than they were at the start of the year, you could argue this means there are more stocks available for less.

Opportunity to invest?

Whilst this could be seen as an opportunity to invest (with the potential to get more for your money in the shape of returns further down the line) - always remember, there is no guarantee prices won’t continue to fall, or even recover.

Good things come to those who wait

It looks like lockdown life is beginning to ease more and more over the next few months (hurrah), but what does this mean for the markets? We’d love to be able to tell you when they’ll be back to ‘normal’, but the truth is nobody knows!

Look at the facts

Whilst we don’t have a crystal ball to predict the future, what we do have are facts. So, it may be encouraging to learn than in every 18-year period over the last 50 years, stocks and shares have grown more than cash accounts*

*Barclays Equity Gilt study March 2019

Whatever you decide to, we’ll be here to help you every step of the way.

Please note: OneFamily do not provide investment advice. Whether you’re a glass half full, or glass half empty type of person - you should always remember when dealing with stocks and shares, whilst they can have good potential for returns in the long run – their values can fall as well as rise.  So, there’s always a chance you could get back less than is paid in.