Ukraine – guidance for private investors

During the first few weeks of 2022, we had already seen most global markets pull back slightly from any gains made in 2021 for a number of reasons, including the fear of rising interest rates and inflation, high company valuations in the tech space but also some investors taking profits from previous years.

As the threat of the Russian invasion over Ukraine increased, markets became more volatile and, in the week commencing 21 February 2022, the value of the top 100 companies in the UK fell by around 7%. Year to date, the global equity index is down just over 10%. So, what should you do as a private investor?

• It’s important to remember to keep your nerve, even during periods of stock market volatility. History shows us that markets tend to recover after sudden falls.
• Focus on your long-term goals – investing for the long-term gives your money the best chance of growing in value.
• It’s all about ‘time in the market’, not ‘timing the market’. Don’t try and pick when to come in and out of the market. Studies show that missing out on the best few days can have a significant impact on the long-term value of your investments.
• Stock market volatility often presents investment opportunities. For example, as markets fall your new investments are buying investments at a cheaper price. This is known as pound cost averaging and reduces the investment timing risk.
• Importantly, take professional advice before making any decisions that you might regret in the future.

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Investments may fall as well as rise and are not guaranteed.  This is not a recommendation and you should seek personalised financial advice before taking any action.
Regulated financial advice is provided by Moore Kingston Smith Financial Advisers Limited, an appointed representative of Best Practice IFA Group Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Our FCA register number is 558116.