The news throughout June seemed to stumble from one bad story to another. Financial markets were no different, with headlines focusing on Greece and their negotiations to repay national debt.
The crux of the argument between Greece and its creditors is how quickly – if at all possible – the country can repay the growing debts whilst trying to reduce the impact on its people.
From an outside point of view, it is this uncertainty that is causing the volatility. Until Greece comes to either a permanent arrangement or decides to reinstate the Drachma as currency, this uncertainty will cause markets to drop quickly yet bounce back equally fast.
Even now, the FTSE is demonstrating that uncertainty and is currently at a low point for the year.
The fundamentals for investments (ignoring the situation in Greece) remain sound and a diverse portfolio of different asset classes and investment funds will no doubt demonstrate steady growth over time.
So once a decision is finally reached in Greece, whatever the outcome, I believe clients will see their investments take a leap forward.
Clients investments will ride out the turmoil and for many they will benefit from the bounce back when it occurs.
The focus needs to remain long term and the potential for growth remains. We also suggest that the majority of clients’ funds be invested in a diverse spread within the UK and globally (including the Eurozone to some extent) and including non-correlating asset classes such as property and the ‘absolute return’ sector.
If you are concerned with your investments and pensions or would like to chat about your options, you know Platinum are only a phone call away.