The unexpected result of the US election may impact your investment. That's because your savings may be invested in growth assets (shares and property), both in New Zealand and overseas. Initially global markets reacted negatively to this surprise but have since bounced back, however there may continue to be some volatility over the short term. These ups and downs in the value of the investments will flow through to your investment balance, but don’t panic. Fluctuations in your account balance are to be expected.
What is market volatility?
World markets have times where they move up and down more than usual. This can be caused by significant financial, environmental, social or geopolitical events (for example a recession, natural disaster, an act of war or the unexpected US election result). These market movements can affect your investment savings.
2 things to remember about your investment savings
1. You're investing for the long-term
Your Wealth Manager provided you personalized advice on your situation and recommended your investment to meet your long term objectives. Unless your goals or risk profile has changed, it is unlikely our advice would differ.
2. The market will pick up again
Markets are cyclical and we expect them to move up and down over time. Prior to the recent market volatility, world markets have experienced growth in recent years. It is impossible to predict when these cycles will start and finish. Investors who try to avoid volatile periods in share markets risk missing out on gains that can follow.
The nature of investments mean they go up and down over the long-term. But we understand it’s also human nature to worry about a potential shrinking balance. You're better off not being too focused on the day-to-day changes in your investment account balance, and instead looking at the longer-term trend.
If you have any questions, please contact your Wealth Manager directly. Alternatively, you can contact our Wealth Advisory team Monday to Friday between the hours of 9am-5pm on 0800 108 084